Notley recalibrates on Northern Gateway

Once opposed, NDP hints at ways forward on pipeline to B.C. tidewater

CALGARY Alberta’s NDP government now sees a potential path forward for the proposed Northern Gateway pipeline through British Columbia, as interprovincial talks continue linking future electricity sales to pipeline approval.

Premier Rachel Notley has said she won’t back Gateway, which would send Alberta oilsands crude to the northern Pacific coast for shipment to Asian markets, because obstacles to the project were insurmountable. But the premier’s press secretary, Cheryl Oates, acknowledged Thursday that Notley is rethinking her position and is now more open to Gateway.

The $6.5-billion pipeline project from Calgary-based Enbridge received tentative approval, with more than 200 conditions, from the National Energy Board in 2014, but it has faced significant opposition from the B.C. government, First Nations and environmental groups.

At an event in Calgary Thursday, NDP Economic Development Minister Deron Bilous said it is too early to comment on whether Alberta would advocate for Gateway but acknowledged the province now sees potential ways for the pipeline to get built.

“There are possibilities, absolutely,” said Bilous.

“There are conditions, there are processes that need to go through and we believe in those processes engaging with the affected communities ... I’m encouraged by the fact that I think there’s a willingness to come together.”

B.C. has put forward five conditions to allow an oilsands pipeline to move forward, including that the province receive its economic “fair share” from the project.

But new pipelines to open new markets are seen as key for Alberta, currently being battered economically and fiscally by low oil prices, to access better prices for its energy.

The NDP government has backed Kinder Morgan’s proposed expansion of its Trans Mountain line to Vancouver — as well as TransCanada Corp.’s Energy East project to the Atlantic coast — but Gateway had been a non-starter for Notley.

During the provincial election campaign a year ago, Notley told the Calgary Herald editorial board that “Gateway isn’t the right decision.”

“There’s just too much environmental sensitivity there and I think there’s a genuine concern by the indigenous communities,” she said.

Oates said the premier’s change of heart stems from increased optimism that some of the hurdles to Gateway are being addressed, but she noted “it’s still an incredibly steep hill for that project.”

Gateway spokesman Ivan Giesbrecht said Enbridge is making progress in building relationships and partnerships with “aboriginal equity partners” and other First Nations.

He said Notley’s newly positive outlook is a boost for the pipeline’s prospects, but it is too soon to say whether the Alberta government has a formal role to play in moving Gateway forward.

The NDP’s recalibration on Gateway comes amid discussions between the two provincial governments on the idea of Alberta purchasing hydroelectricity from B.C. through a new northern intertie — meaning new dollars for B.C. while Alberta gets a new source of clean power as it phases out coal.

The NDP government has explicitly linked new power purchases to B.C. allowing a pipeline to go ahead.

“There are talks that are occurring as we speak,” said Bilous.

In a statement, B.C. Environment Minister Mary Polak said a strengthened intertie is an opportunity for climate change action by the two provinces.

She said B.C.’s five conditions for heavy oil pipelines, which include implementing “world-leading” marine and land spill prevention and response systems, remain in place.

“These are conditions that are achievable if the will is there, especially from senior governments and industry,” said Polak.

I’m encouraged by the fact that I think there’s a willingness to come together. ECONOMIC DEVELOPMENT MINISTER DERON BILOUS