Ottawa should backstop its approval of Trans Mountain and get the B.C. government to stand down: CAPP

April 10, 2018 - Toronto, Ontario
Ottawa should exert its federal authority to end the B.C. government’s attempts to stop the Trans Mountain expansion project (TMEP) and provide a construction to backstop its approval and allow construction of the pipeline to move ahead.

A construction guarantee should not cost taxpayers as Ottawa has repeatedly said the project will be built and sanctioned into operation, but it would demonstrate the financial security needed to allow construction to proceed.

Ottawa has the legal authority under the Constitution to approve projects in the national interest. Now that the government has made the decision to approve TMEP, it needs to stand behind the project and ensure it gets built by telling the B.C. government they must stand down from their repeated obstacles. 

The Government of Canada and Prime Minister Justin Trudeau have been strong supporters of TMEP and advocates for increased market access for Canadian resources. B.C. Premier John Horgan is holding Canada hostage by openly defying federal jurisdiction. 

To date, Kinder Morgan has spent $1.1 billion to advance TMEP and has made substantial changes to address Canadians’ concerns. It has included thicker wall pipe in environmentally sensitive areas; changed the detailed route and construction plans for the Burnaby mountain tunnel; and, altered the design of the Burnaby marine terminal, among others.

A construction guarantee from Ottawa by May 31, 2018, and a clear end to the B.C. government’s actions to thwart the project address both the financial and political risks that are stalling TMEP. 

Canadian Association of Petroleum Producers quotes: Tim McMillan – president and CEO
  • “Prime Minister Trudeau has been a strong supporter of his government’s decision on Trans Mountain but now needs to exercise the authority Canadians gave him and uphold its approval.”
  • “This project is in the best interest of all Canadians but B.C. Premier John Horgan is holding the country hostage. He is overstepping his jurisdiction. It’s time B.C. show respect for the rule of law.”
  • “A construction guarantee has no cost to taxpayers if Ottawa keeps their word to get this project built.” 
  • “Pipelines are debated in courthouses and the legislature – they aren’t built there. The time for debate is over. The time to build is now.” 
  • “We need pipelines in Canada – not barricades – to ensure Canada’s sustainable production supplies the world with the energy it needs to meet growing demand.”
Supporting information
  • About 99 per cent of Canadian exports – more than 3.3 million barrels per day (bpd) in 2016 – is exported to the United States at a discounted price per barrel, while less than one per cent is shipped overseas. Without access to emerging economies in Asia and beyond, Canada will never realize fair market value for its oil and natural gas.
    • Since 2008 the U.S. has added 4.4 million bpd of oil to its energy portfolio, making it both Canada’s biggest customer and its biggest competitor.
  • CAPP forecasts oil supply in Western Canada will increase to 5.4 million bpd by 2030 compared to 3.9 million bpd in 2016. Current pipeline capacity is four million bpd.
  • The Ipsos 2017 Global Energy Pulse survey found Canada ranked No. 1 among 11 producing nations as the energy supplier of choice among 32 countries.

The Canadian Association of Petroleum Producers (CAPP) represents companies, large and small, that explore for, develop and produce natural gas and crude oil throughout Canada. CAPP’s member companies produce about 80 per cent of Canada’s natural gas and crude oil. CAPP's associate members provide a wide range of services that support the upstream crude oil and natural gas industry. Together CAPP's members and associate members are an important part of a national industry with revenues from crude oil and natural gas production of about $110 billion a year. CAPP’s mission, on behalf of the Canadian upstream crude oil and natural gas industry, is to advocate for and enable economic competitiveness and safe, environmentally and socially responsible performance.

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