Trudeau Poised to Greenlight Major Crude Pipeline
“There is a lot of work ahead of us,” Hal Kvisle, chairman of ARC Resources Ltd., said in an interview on BNN Bloomberg. “The environmental groups will not let this go down easily,” said Kvisle, who is also the former chief executive officer of TransCanada Corp., now known as TC Energy.
The government has said it eventually plans to sell the pipeline, and some combination of First Nations are likely to take a stake in the project along with private buyers such as pension funds.
Even as some indigenous communities in British Columbia have voiced opposition to the pipeline, others are eager to own a stake in Trans Mountain. Project Reconciliation and Iron Coalition, groups formed by First Nations and Metis communities, have arisen to bid on a stake.
The current lack of shipping options sent the industry into a crisis last year, when new production from a few major projects overwhelmed shipping capacity and U.S. refiners had a heavier-than-normal maintenance season. That left Canadian oil with nowhere to go, filling up storage tanks and sending prices to record lows.
The crisis was only alleviated after the Alberta government mandated industry-wide output cuts that took effect this year. The move caused prices to rebound, but has limited how much drillers can produce.
It’s unlikely that the Trans Mountain expansion would come in time to help alleviate the current bottleneck. While construction could begin this year, the project may not come into service until 2022 or 2023.
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