National Post

Job No. 1: getting Canadian energy to Asia

- Claudia Cattaneo

After years of conflict over proposed energy projects — particular­ly oil pipelines — Western Canadian eyes in 2016 will be on James Carr, the federal natural resources minister, to deliver approvals.

First up is the $6.8-billion expansion of the TransMount­ain oil pipeline between Edmonton and Burnaby, B.C., which after two years of controvers­ial review is due for a National Energy Board recommenda­tion to Prime Minister Justin Trudeau’s cabinet in May. The cabinet, in turn, will be expected to rule around August whether the Kinder Morgan project can move forward.

Another major project long overdue for startup is the $ 11.4- billion Pacific North West LNG, led by Malaysia’s Petronas, which is also waiting for federal environmen­tal approval in early 2016 after a string of delays.

Both have been paralyzed by confrontat­ions with First Nations, NIMBYs, environmen­talists.

Both would open the door to the export of Canadian oil and gas to Asia, giving a boost to Western Canada’s energy sector at a time of depressed commodity prices and making the country less beholden to the oversuppli­ed American market.

Carr’s job will be complicate­d by Trudeau’s fixes to appease opponents, such as upping climate-change commitment­s, promising to reform the NEB sidelining the approved Northern Gateway oil pipeline by formalizin­g a ban on oil tankers on Canada’s northern coast.

Carr will quickly find out opponents of energy projects will continue to oppose, regardless of what’s offered to appease them, while the country’s energy economy is facing long- term stagnation without infrastruc­ture and new markets.

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