Feds won’t intervene in pipeline hearings

Trans Mountain project caught in more delays

OTTAWA • Natural Resources Minister Jim Carr reiterated Wednesday Ottawa’s support for the potentially delayed Trans Mountain expansion project, even after the federal government declined to participate in an upcoming hearing on the pipeline.

Ottawa approved the pipeline development in November 2016.

Carr has been vocally supportive of the $7.4-billion expansion, but the federal government has taken a backseat on regulatory proceedings.

“The responsible thing for the government of Canada to do is let the process work its way out,” Carr told reporters.

“We have approved this project, we want it to proceed,” he said. “We have not backed away from that judgment.”

The comments come as

has warned in recent weeks that regulatory snags could set back its completion date by as much as nine months, and that the project could even be cancelled if delays persist.

Ottawa has declined to participate in hearings over the project scheduled for later this month, which could decide whether the project meets further delays or is cancelled altogether. Applications to intervene closed midnight Wednesday.

Failure to build the pipeline threatens to intensify pressure on the Liberals, who have publicly repeated their commitment to helping Canada’s oil and gas industry gain better access to international markets for its crude.

Last month, Calgarybased TransCanada Corp. cancelled its contentious Energy East pipeline, citing both a three-year slump in oil prices and heightened regulatory requirements brought on by the National Energy Board.

The project was seen as unnecessary due to the falling production projections in Canada’s oil sector, as major new capital investments are shelved or cancelled.