Canada tanker ban threatens pipeline

Canada

CALGARY, November 17, 2015 – The realisation of Canada’s $7.9-billion Northern Gateway Pipeline project is becoming less likely as the latest regional developments hamper progress. The oil tanker ban on coastal British Columbia, which was proposed on Monday by Prime Minister Justin Trudeau, as well as First Nations opposition, stall the project despite the federal government’s 2014 approval.

The 1,100-kilometre pipeline would link Edmonton and Kitimat on the coast of British Columbia, making the ban on tanker traffic critical for the project’s future.
The twin pipeline was initially going to transport crude oil extracted from oil sands to the coast for export, and carry imported natural gas in the opposite direction.

The shortage of export pipelines in Canada adds to the frustration of oil and gas players about the stalled project, as their export destinations are limited to US refineries. US President Obama recently rejected the XL Keystone pipeline project that would direct Canadian oil to exporters through the Gulf.

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