Following nearly a decade of back and forth debates and discussions, Enbridge announced in December that the joint review panel tasked with deciding whether or not the Northern Gateway pipeline project should get the go-ahead, recommended that the federal government approve the project, subject to 209 required conditions.
After months of research and hearings, the panel stated, “Based on a scientific and precautionary approach to this complex review, the panel found that the project, if built and operated in compliance with the conditions set out in its report, would be in the public interest.”
“After weighing all the oral and written evidence provided, the panel found that Canada and Canadians would be better off with the Enbridge Northern Gateway Project than without it.”
The decision and subsequent recommendation comes after more than 18 months of hearings held in communities along the route of the proposed pipeline project. Should the federal government choose to approve the potentially groundbreaking project, Enbridge would be tasked with constructing and operating the $6 billion pipeline.
Starting in Bruderheim in northern Alberta, the pipeline would stretch westward 1,177 kilometres through northern British Columbia before resting at the deep-water port in Kitimat, B.C. The twin pipeline system and marine terminal could potentially transport 525,000 barrels of oil per day for export, and import 193,000 barrels per day of condensate – the product used to thin oil for pipeline transport.
Should it go ahead, Enbridge claims that the Northern Gateway Project would bring “significant, lasting economic benefits” to the Canadian economy, including over $300 billion in GDP over 30 years, $4.3 billion of labour-related income across Canada during construction and $2.6 billion in local, provincial and federal government tax revenues.
The company stated it would also create 1,150 long-term jobs for the Canadian economy.
Speaking in Vancouver last week, Prime Minister Stephen Harper noted that although the panel had recommended the federal government approve the project, the idea that it would do so was not a “foregone conclusion.
“We will not approve projects unless they are not only in our economic interests but also meet the highest standards of environmental protection,” Harper said during a 30-minute question and answer session hosted by the Vancouver Board of Trade. “We want to make sure they are environmentally safe and every measure is taken to prevent any kind of serious environmental threat or other kind of disaster and, in the rare case that anything might happen, there are adequate responses.”
He noted that his cabinet would balance all the economic and environmental interests before making a final decision on whether to approve the project.
Upon the announcement that the federal agency's joint review panel had recommended the project be approved, the Alberta government praised the decision, with the province's newly-appointed Energy Minister Diana McQueen saying the approval marked a “great day” for Alberta.
“We're very happy about this announcement and look forward to this project proceeding,” McQueen said when she spoke to the media immediately after the decision became public at the end of last year. “This is a major project for us to make sure we can reach other markets, most notably in Asia.”
The provincial government in British Columbia, however, took an opposite view of the announcement. Having already laid down five conditions it said would have to be met before it would consider supporting the 525,000 barrel-a-day pipeline, the province's Environment Minister Terry Lake said Enbridge has done little to ease the concerns of both B.C. residents and the province's government.
“We have some real concerns and we've been working on this file for a year and a half now,” Lake said in an interview with several media outlets last year. “At the end of the day, we've summarized all of the concerns we have, and they haven't changed. This isn't the final say in terms of British Columbia's position, but it certainly indicates that it is a very, very tall order for us to be supporting this project.”
The five conditions laid out by B.C. include spill-readiness provisions for land and water, successful completion of regulatory processes, successful dealings on First Nations legal and treaty rights, and a demand for a “fair share” of fiscal and economic benefits. Current projections estimate Alberta will see roughly $67 billion in revenue over 30 years from the pipeline, while B.C. is expected to bring in $15 billion.
Janet Holder, the leader of the Northern Gateway project, said that the pipeline would bring added prosperity to Canada, while also taking into consideration all environmental concerns and addressing them by including added steps and procedures designed to prevent any unwanted disasters.
“From the beginning of this project, Northern Gateway has worked with one goal in mind – to access new markets by building a safer, better pipeline,” Holder said. “The review panel conducted the most comprehensive and science-based pipeline review in Canadian history and their report reflects the input of thousands of Canadians.”
She added, “Northern Gateway will be designed to protect (Western Canada's) unique natural environment with world-class spill prevention, response and recovery. Together with world-leading engineers and scientists, the team at Northern Gateway is engaged in an expert review process. We will closely analyze the panel's conditions, many of which reflect commitments we put forward at the hearings, and continue to listen and be open to change. We can look forward to sharing our progress with (Canadians) openly and transparently”
Spokesperson for Enbridge Ivan Giesbrecht echoed those sentiments when he spoke to the Nouvelle last week, stating this project would be a “huge positive” for Canada, especially when it comes to expanding its international exporting market.
“I strongly believed right from the beginning that Northern Gateway was an important project for Canada as an oil exporting nation,” Giesbrecht said. “Canada has been exporting oil for the last 60 years, but right now our only customer is our friends in the United States. I think this project is something Canada needs to access a growing Asian and Pacific Rim economy that right now wants to buy our resources.”
Giesbrecht noted that although it is pleasing for all those involved with Northern Gateway to hear of the review panel's decision, he acknowledged there was still a long way to go and a lot of work to be done before the project is given the green light.
“It's certainly gratifying because we've put a lot of effort into this project. But we recognize this is one step, albeit an important step, in the long journey we're undertaking here.”
The project has received widespread commercial support over the past few years, filing several precedent agreements with the National Energy Board in August 2011 which provide for long-term service and capacity on both the proposed crude oil export and condensate import pipelines. Capacity has also been reserved for use by uncommitted shippers, while potential shippers have also provided funding support for the regulatory phase of the project.
One of the major concerns since the project was first earmarked in the early 2000's was the reaction of several Aboriginal communities throughout Alberta and B.C. Enbridge confirmed that it had been engaging in outreach with Aboriginal groups and stakeholders for more than ten years, and that it had signed 26 equity partnership agreements with several Aboriginal groups and communities.
Climate and Energy Campaigner for Greenpeace Canada Mike Hudema raised several concerns about the project when he spoke to the Nouvelle last week, most notably regarding the destruction a possible oil spill could have on Alberta and British Columbia.
“I have a number of serious concerns with the Northern Gateway Project, first of which is with the pipeline crossing several rivers and streams, many of which are salmon bearing, on its way to the west coast. Should anything ever happen or the pipeline ever spills, the effect on B.C.'s salmon industry would be quite severe,” Hudema said.
He added, “You also have to take into account just how many super tankers would be travelling up and down the very narrow and dangerous strait into the port at Kitimat – if there was ever any kind of spill there, the effect on B.C.'s fishing industry, or indeed the province's economy and communities that depend on a clean and pristine west coast would be more than substantial. Should a spill ever occur, they would be impacted for decades or even longer.”
Hudema pointed out that although it may seem like a lot of people are in favour of the cross-province pipeline, there are even more against it. He stated over 130 First Nation communities, thousands of B.C. residents and indeed the B.C. government have all been voicing concerns about the project.
“When you look and realize that there are over 130 First Nation communities that have stated their opposition to the pipeline because of the effects it could have on their traditional territory, you have to take notice,” Hudema said. “Their views should absolutely be respected and at the moment Enbridge isn't doing that.”
He added, “Through the hearing process, there was an overwhelming majority, I'm talking numbers between 80 and 90 percent, of people that provided both written and oral testimony against this pipeline, and in fact one of those voices was the B.C. government. They said this pipeline should be denied and considering the majority of it would pass through the province, that should be taken into consideration.”
“If this pipeline is pushed through, it will be pushed through against the wishes of first nation communities who live along the pipeline and tanker route, against the wishes of the majority of people in British Columbia, and against the wishes of the B.C. government too.”
With Bonnyville home to many involved in the oil industry, the effect the Northern Gateway Project could have on the town could be “pretty significant” according to Mayor Gene Sobolewski, who said he's looking forward to seeing what the project could bring to northeastern Alberta, should the federal government approve it.
“I think Northern Gateway is one of many projects that is going to continue to help enhance and aid the growth in this area,” Sobolewski said. “I'm excited that it's at least gone past the regulatory hurdle and the review panel has recommended the federal government move forward with it. I guess now we just have to sit back and wait to see what happens.”
The federal government is expected to render its final decision on the Northern Gateway Project by July 2014.
Portage College pipeline training centre
In light of the recent announcement of the recommended approval for the Northern Gateway Pipeline, Portage College stated its intent to move forward with plans to build the country's first Pipeline Training Centre in Boyle, Alberta, which will see the institution well positioned to respond to the increased need of an educated workforce in the oil industry.
The school's President and CEO Dr. Trent Keough said “the time is now” to construct this one of a kind pipeline training centre, stating the college had a responsibility to educate and train students with an interest of entering the oil sector.
“Alberta's oil production is rapidly expanding and this centre would be crucial to establishing Alberta's position as a global leader in pipelining,” Keough said.
The new centre will sit on approximately 435,600 square foot of land just outside Boyle and will combine patented simulation technologies, and boots-on-the-ground training. The facility will also house a closed loop pipeline that simulates oil spills using non-toxic materials to give students and working professionals an opportunity to develop important spill response and technical skills.
“Portage College is committed to establishing a culture of safety in the emerging oil and gas industry,” Keough said. “The decision on Northern Gateway is just one of many major pipeline projects in the province, increasing the demand for a site that teaches and demonstrates pipeline safety.”
