Newspaper article The Canadian Press

Financial Centre of Oilpatch Hails Approval of Trans Mountain Expansion, Line 3

Newspaper article The Canadian Press

Financial Centre of Oilpatch Hails Approval of Trans Mountain Expansion, Line 3

Article excerpt

Oilpatch hails federal pipeline approvals


CALGARY - The financial centre of the oilpatch applauded Ottawa's approval of two massive pipeline developments, saying the decisions send a message that Canada is open to investment at a time when the economy sorely needs it.

"Canada's reputation as a place that can move projects forward took a step forward today," said Tim McMillan, head of the Canadian Association of Petroleum Producers at a press conference.

"We have seen today that our governments support energy projects that meet the high standards here in Canada, and that positions us well for the future."

For months, the energy sector had waited with bated breath for federal pronouncement on three projects: Kinder Morgan's Trans Mountain expansion and Enbridge's Northern Gateway and Line 3.

On Tuesday, Prime Minister Justin Trudeau responded, rejecting Northern Gateway while sanctioning the other two proposals.

"This is a defining moment for our project and Canada's energy industry," Ian Anderson, president of Kinder Morgan Canada, said in a news release.

The $6.8-billion Trans Mountain expansion would see the capacity of a pipeline that runs from the Edmonton area to Burnaby, B.C., nearly triple, to 890,000 barrels per day.

Trudeau also announced the approval of the $7.5-billion Line 3 replacement project, which would see that pipeline roughly double its current output to 760,000 barrels per day.

When combined with the Trans Mountain expansion, Trudeau gave the green light to close to a million barrels of crude exports a day in one fell swoop.

"This is exactly the good news the Albertan and Canadian economies need right now," Calgary Chamber CEO Adam Legge said in a statement.

Trevor Tombe, an economics professor at the University of Calgary, said that Trans Mountain would help oil producers reap higher prices by exporting to the Asia market, with even a $5 a barrel price increase translating to about $5 billion a year in extra revenue. …

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