Enbridge says it would pitch new pipeline to reach West Coast if right conditions exist
Canada's biggest crude oil shipper says a lot needs to happen before it would propose a new pipeline to the West Coast.
Alberta Premier Danielle Smith has said she wants to see a pipeline running from her province to the Port of Prince Rupert, B.C., so that more oilsands crude can be exported to Asia by tanker.
She told a news conference Tuesday that the province has been in 'active conversations' with pipeline companies and is 'pretty close' to having a one or more come forward with a plan.
Smith has said the West Coast pipeline she envisions would test the Liberal federal government's new process to review projects deemed in the national interest within two years.
Enbridge Inc., which has a massive pipeline network spanning Canada and the United States, says it will always assess market-diversifying projects, provided there is a demand from the producers it serves.
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It says in a statement that any new project would require careful consideration and real provincial and federal legislative change around carbon policies, regulatory timelines and Indigenous participation.
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'We will be there to build what is needed for our shippers, for Alberta and for Canada — that's our job, our mission as a company — but only when the conditions make sense and the right framework is in place,' Enbridge said.
The CEO of federally owned pipeline operator Trans Mountain Corp. told reporters earlier this month that his company is among those Smith has spoken to about spearheading a new pipeline.
But Mark Maki said 'optimizing the existing kit' is a priority over building something new for now.
Trans Mountain flows to the B.C. Lower Mainland is currently the only way Alberta producers can meaningfully access Asia-Pacific markets.
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South Bow Corp., which operates the Keystone pipeline connecting Alberta crude to refineries in the U.S. Midwest and Gulf Coast, said in a statement it appreciates provincial and federal recognition of the need for increased pipeline capacity.
'South Bow carefully evaluates all opportunities, especially those that complement our current assets and strengthen our existing corridor.'
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The company said in a written statement June 25 that it would explore market-diversifying projects, provided the demand is there from customers. It would also take "real provincial and federal legislative change" around climate policy, regulatory timeliness, and Indigenous participation. "We will be there to build what is needed for our shippers, for Alberta and for Canada-that's our job, our mission as a company-but only when the conditions make sense and the right framework is in place," Enbridge said. Meanwhile, South Bow Corp. would only say it "carefully evaluates all opportunities, especially those that complement our current assets and strengthen our existing corridor." South Bow has no infrastructure in B.C. Its Keystone system serves U.S. Midwest and Gulf Coast refineries. The CEO of federally owned pipeline operator Trans Mountain Corp. told reporters earlier this month that his company is among those Smith has spoken to about spearheading a new pipeline. 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"And my concern is that if you only put one option on the table and that option has lots barriers to being realized, you're going to end up with a lot of disappointed people later." He adds it would take two to three years of engineering, environmental and consultation work before a proposal is ready to be filed. So even if Ottawa's two-year review limit holds, its' five years until shovels hit the ground in a best-case scenario. For Enbridge, Masson said one stumbling block would be how a potential new West Coast system may affect the economics of its Mainline system, which on any given day is the largest-single conduit for Canadian crude flowing by pipeline to the United States. A new pipeline would likely have to be underpinned by decades-long commitments from customers to pay to use it, whereas the Mainline is more flexible, he said. If customers are already locked into paying to use any potential West Coast system, there's more incentive to move crude on that before the Mainline. 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