Canada extends deadline for decision

CALGARY — Canada has extended the deadline for a decision on whether to push forward with the expansion of the Trans Mountain oil pipeline to June 18 from midMay, the Natural Resources Ministry said in a statement on Thursday.

The Trans Mountain expansion project would nearly triple the amount of crude carried from Alberta’s oil sands to British Columbia’s coast, but has been beset by regulatory delays and fierce opposition from indigenous groups,environmentalists and the government of British Columbia.

Amarjeet Sohi, Canada’s minister of natural resources, saidthe delay would give the government more time to consult with indigenous groups impacted by the pipeline.

“The Government has consistently said that a decision would only be made on the project once we are satisfied that the duty to consult has been met,” he said.

Last August, the government of Canada bought the pipeline from Kinder Morgan Canada for $4.5 billion to ensure it gets built.

That move came after Canada’s Federal Court of Appeal overturned the Liberal government’s 2016 approval to expand the pipeline.

The court ruled the Canadian National Energy Board regulator had failed to consider marine impacts and the government had not adequately consulted indigenous groups.

Prime Minister Justin Trudeau’s government ordered a new NEB review of Trans Mountain last September, and in February the project cleared one hurdle when the regulator recommended the government approve the project a second time.

The NEB also made new recommendations to mitigate harm to Pacific Ocean killer whales, which environmentalists warn will face disruption from increased oil tanker traffic exporting crude to Asia.

Sohi said the government was making “real progress” in consultations with indigenous groups, who have also said more time is needed.

RBC Capital Markets energy analyst Michael Tran said the short delay to the Trans Mountain decision would not materially impact the energy sector, and it was more important that the government consult properly to avoid more delays in future.

“The whole aim of this now is that there are no more moving goal posts. The government is taking its time to make sure the right decision is made and it’s communicated the right way to the masses,” Tran said.

Trudeau’s Liberals face a federal election later this year in which the environment and energy pipelines will be major issues.