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‘The opposition is not going to cease simply because new crude oil pipelines have been accomplished and constructed,’ Sonya Savage says
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Does Canada want a company to advocate for oil and pure gasoline pipelines if no new important venture proposals are coming down the highway?
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Apart from the homeowners, who will converse up for tasks now underway or present ones going through fierce opposition — comparable to Enbridge’s Line 5, the place a brand new twist unfolded Monday — if the group that represents the sector disappears?
These are questions for the {industry} to ponder after the Canadian Vitality Pipeline Affiliation (CEPA) mentioned Friday it will stop operating on the finish of 2021.
It’s clear that leaders of huge pipeline firms, together with Enbridge, TC Vitality and Pembina Pipeline, can converse up for his or her particular person companies to regulators, policymakers and the general public — and they’re going to.
Nevertheless, that leaves CEPA headed for extinction.
The choice to shut comes after Enbridge determined to depart the 28-year-old {industry} affiliation final fall, with TC Vitality and Pembina Pipelines serving discover they might depart by the tip of this 12 months.
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Alberta Vitality Minister Sonya Savage, who beforehand labored at CEPA and Enbridge earlier than getting into politics, was blunt Monday when requested concerning the resolution.
“It’s actually short-sighted for these firms to have let the {industry} affiliation fold as a result of you already know we’re going to wish it once more,” Savage mentioned in an interview.
“You see the assaults and the opposition to main new pipeline tasks. Effectively, that opposition is now concentrating on present pipelines … Who’s going to be advocating for the industry-wide perspective on that?”
CEPA president Chris Bloomer mentioned the lack of the three giant pipeline firms as members created a finances gap that couldn’t simply be stuffed.
It led to the board’s resolution to cease operations by 12 months’s finish and the pipeline firms will quickly be left to talk on their very own behalf.
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“My indication from the businesses is that they need to do it on their very own,” Bloomer mentioned Monday.
“And corporations like TC and Enbridge, they’ve the capability to do this … however the bigger firms are altering, too, and their focus is completely different and that must be acknowledged.”
The businesses definitely have the flexibility to rent lobbyists and consultants to make sure their voices are heard in Ottawa.
In an announcement, TC Vitality mentioned it’s a member of varied commerce associations throughout North America and, after cautious overview, determined to not renew its CEPA membership.
The choice additionally displays a altering interval for the nation’s pipeline sector. The period of large oil pipeline tasks being pitched in Canada is winding down with the demise of Keystone XL earlier this 12 months.
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Whereas opposition to Enbridge’s Line 3 substitute venture continues, the pipeline started to replenish with oil on Friday. Building on the Trans Mountain enlargement is now greater than 30 per cent full.
CEPA began as a technically centered group that shared data and collaborated on greatest practices, Bloomer mentioned. With the pipeline battles of the previous decade, it shifted into an advocacy position.
However legislative hurdles, low commodity costs, the push to decarbonize, together with ongoing authorized and regulatory struggles, have all made it tough to construct new vitality infrastructure in North America.
“It’s an indication of the instances,” mentioned former TransCanada govt Dennis McConaghy, who has written books concerning the pipeline sector.
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“It’s one other voice misplaced in Ottawa.”
Former TransCanada Corp. CEO Hal Kvisle, who’s chair of the Enterprise Council of Alberta, mentioned CEPA performed a robust position over time on technical points, comparable to coping with pipe corrosion and integrity points.
The pipeline battles in North America as we speak are a unique matter.
It is one other voice misplaced in Ottawa
Dennis McConagh
“The issues are so political and so tough and of such nationwide curiosity, I feel a company like (CEPA) would have a really powerful time having an affect,” Kvisle mentioned.
The battle over Line 5, an present pipeline operated by Enbridge, highlights the presence of politics in such issues.
The pipeline ships 540,000 barrels of oil and pure gasoline liquids per day from Western Canada to Ontario, with the route working underneath the Straits of Mackinac, shifting product by Michigan to Sarnia.
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Michigan Gov. Gretchen Whitmer, citing security considerations, needs to close it down and revoke an easement granted in 1953 for the road to go underneath the straits. The dispute is earlier than the U.S. courts.
Enbridge and the Canadian authorities are working collectively, together with the provinces, to make sure the circulate of vitality to the world isn’t disrupted.
On Monday, legal professionals for the federal authorities formally invoked a dispute settlement provision in a 44-year-old pipeline treaty signed by Canada and the U.S. to forestall authorities from blocking the transmission of oil or gasoline in transit between the international locations.
Information of the treaty being invoked got here after mediation discussions between Michigan and Enbridge stopped. “Enbridge has continued to take part within the mediation course of in good religion and nonetheless is hopeful {that a} negotiated decision” can hold vitality flowing, the corporate mentioned in an announcement.
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Savage referred to as Monday’s announcement excellent news, as discussions have been at a standstill and invoking the treaty “wanted to occur.” It should take the dispute out of the authorized system whereas the treaty is mentioned by the 2 international locations.
As for the tip of CEPA, Savage referred to as it a disappointment, noting an {industry} group can converse with a wider voice to governments than a single firm on key issues comparable to constructing or working present pipelines.
“The opposition isn’t going to cease simply because new crude oil pipelines have been accomplished and constructed. It’s going to seek out one thing else to oppose and so they received’t have that robust voice of the {industry} affiliation representing the {industry} as an entire,” she mentioned.
“That’s going to be problematic.”
Chris Varcoe is a Calgary Herald columnist.
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