Energy East pipeline victim of overreach
TransCanada Corp. has hit pause on its Energy East pipeline, throwing the future of the project in doubt. That the company put on hold for 30 days an application to build the 4,500-kilometre pipeline to carry Alberta and Saskatchewan crude to Saint John, N.B. — a possible prelude to outright cancellation — should raise alarm bells for all Canadians.
Alberta and New Brunswick were banking on the $15.7-billion project for expanding access to market for western oil, billions in investment or hundreds of construction jobs. So it’s disconcerting that TransCanada is calling a time-out to see if the project still makes economic sense, especially in light of sluggish oil prices and brighter prospects for its Keystone XL pipeline through the U.S.
But how do you blame the company for second thoughts about continuing to play along when the referee moves the goalposts and overhauls the rules in mid-play?
The National Energy Board announced it is broadening the scope of its review of Energy East. For the first time, the regulator will consider upstream and downstream greenhouse gas emissions in its environmental assessment. It adds another hurdle to what is already a regulatory marathon.
TransCanada changed the Energy East route in 2015 after controversy over a proposed export terminal in Quebec infringing on a breeding ground for beluga whales and the NEB’s review also fell apart last year following allegations of conflict of interest.
The NEB’s new process means it will examine emissions from extracting the oil from the ground to its end uses.
Alberta Energy Minister Margaret McCuaig-Boyd is right to complain about regulatory overreach, “Deciding the merits of a pipeline on downstream emissions is like judging transmission lines based on how its electricity will be used.”
Saskatchewan Premier Brad Wall points out the obvious double standard, “Will the federal government apply the same greenhouse gas emissions test to every sector, including auto manufacturing?” Will rail lines carrying crude oil also be asked to account for its emissions after unloading?
It smacks of hypocrisy when our federal government lobbies so hard for the U.S. to speed approval of Keystone XL while energy companies at home face increasingly unclear and onerous hurdles to conduct business.
The federal government is considering a recommendation to split the NEB into two agencies that could double review timelines and move parts of the organization out of Calgary away from industry.
Energy East may be only a taste of the chill coming to Alberta’s economic engine.
— Postmedia Network