
Rob Breakenridge: Patience and planning more important than symbolic pipeline win
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With the ongoing threat of tariffs and trade disruptions emanating from the U.S., coupled with weak GDP growth and dispiriting job numbers at home, there should be added urgency in identifying and advancing projects. Yet, for all the talk in recent months, we're still waiting for action.
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Fresh on the heels of their memorandum of understanding on energy and critical minerals, the premiers of Alberta, Saskatchewan and Ontario have taken the next step. The provinces have launched a request for proposals for companies to conduct a feasibility study into new 'economic and energy corridors.' The Alberta government news release touts the potential of a new Alberta-to-Ontario pipeline resulting from such an approach.
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There are a few problems here, though. For one, it's missing two key players: Manitoba — which this corridor would also have to pass through — and the federal government, which would have to approve any such project and which also controls the regulatory environment that affects such investment decisions.
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The other problem is directional. Why are we talking about going east when it makes the most sense to go west? The need for pipelines does not automatically justify any and all potential projects.
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There may still be enough regulatory uncertainty that poses a barrier to any private pipeline investment but, ideally, market forces guide these important decisions.
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Premier Danielle Smith's previous pitch of a new pipeline project to the West Coast, perhaps bundled with a major new carbon capture project, makes much more economic sense and would have much more potential private sector interest.
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Moreover, a new analysis last week from Alberta Central confirms the benefits of going west. The report lays out the many benefits that have come as a result of the Trans Mountain pipeline expansion (TMX), including the financial boon for governments through lowering the price differential on Western Canadian Select crude oil.

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