N.B. PREMIER HOPES TO REVIVE ENERGY EAST PIPELINE
Higgs thinks plan may be viable again with new premiers also elected in Quebec and Ontario
New Brunswick’s new premier is trying to revive the Energy East pipeline — even though the original proponent says the project is dead.
TransCanada Corporation abandoned the $15.7-billion project more than a year ago, after the National Energy Board modified the environmental assessment process.
But Premier Blaine Higgs, along with some other premiers and federal politicians, are again pushing the proposed pipeline as a way to get more western crude to refineries in Eastern Canada and for export to foreign markets.
Ontario and Quebec have also new elected new premiers this year, and Higgs said he thinks Energy East could be viable.
“The fact that Ontario has said they’re not opposed to oil coming through the province, there’s a hurdle that’s now gone. We know that Manitoba and Saskatchewan are fine and we know Alberta is looking for a way out,” said Higgs.
“We see Alberta now taking a strong position with buying rail cars and saying we’ve got to get our oil to market because they’re losing $80 million a day.”
Higgs said he recognizes Quebec could still be a hurdle and he plans to discuss the project with Premier Francois Legault this week at a first ministers meeting in Montreal.
“We’re talking about interprovincial trade. There are some key issues, and that’s one for us. It’s one that’s important for our province. We need some wins,” Higgs said.
Higgs said he discussed Energy East two weeks ago with Prime Minister Justin Trudeau. He said Trudeau said he’d be willing to discuss the issue again if Higgs was able to get Quebec onside.
But the biggest hurdle may be getting TransCanada interested again. The company cited the regulatory changes and “changed circumstances” as the reason for its pullout last year.
In a statement, Terry Cunha, manager of communications for TransCanada, said their position had not changed.
“We have no plans to revisit the project. We are focused on developing the more than $36 billion in commercially secured pipeline and power generation projects that we currently have underway across North America, including Keystone XL and the Coastal GasLink project in B.C.,” he wrote.
Higgs said he’s not surprised by the Calgary-based company’s position.
“If you spend $800 million and you get jerked around politically so that decisions aren’t made, instead it’s procrastinated on, and ... then all of a sudden the rules change mid-stream and then you don’t have any path forward,” Higgs said. “I don’t blame them. I wouldn’t jump on the bandwagon yet either.”
However, Higgs said he believes if a holding company was formed that applied to the National Energy Board and got the process well underway, then TransCanada might be willing to get back onboard. Federal Conservative Leader Andrew Sheer has also been a big Energy East supporter and has said that a federal Conservative government would seek to revive the project.