West - East Pipeline Moving ahead

[TimSJ]

Great news for us here in southern NB today with Trans Canada announcing that they are going to move ahead with the West East Pipeline.

http://www.cbc.ca/news/canada/new-br...ement-842.html

They will be converting 3000km of existing east west Pipeline and building 1400km of new line to Saint John.

Commitments for up to 1.1 million Barrels a day,

Irving Oil will build a new $300MM Marine terminal here is Saint John, Hopefully we will see upgrader and other developments as Regulatory Approvals happen and work gets started.

[Ducay]

They haven't even submitted it to the government for the various levels of approvals and environmental review, and wont for at least another year. There has already been vocal opposition to the plan, so this is hardly a done deal. Luckily its not a brand new line, so that will cut a lot of the review.

Chances are it will be approved, but we've seen lately nothing is a sure thing.

[darklord700]

One presentation I attended mentioned we need to tap the Asian market because of the price deferrential. How does a pipeline going to St. John tie in to this notion of accessing the Asian market?

[Barnes]

Originally Posted by darklord700

One presentation I attended mentioned we need to tape the Asian market because of the price deferrential. How does a pipeline going to St. John tie in to this notion of accessing the Asian market?

India is a part of Asia.

[darklord700]

OK, a piepline to BC is shorter and probably costs less to build. And now we build one to St. John just because Christy Clark threw sissy fits about not getting their fair shares. Was this the reason? I'm curious if someone in the know could elucidate on this topic.

[Ducay]

Originally Posted by darklord700

OK, a piepline to BC is shorter and probably costs less to build. And now we build one to St. John just because Christy Clark threw sissy fits about not getting their fair shares. Was this the reason? I'm curious if someone in the know could elucidate on this topic.

We want, and can support both. Perfect world we'd have all kinds of pipelines running in every direction. You'd have capacity to throw it wherever you can get the best pricing without having the horrible capacity issues we have now.

Even if this goes through, we'll still be pushing hard to get the BC line done as well, they're not mutually exclusive.

[Brewmaster]

I wonder if the timing of this announcement has anything to do with the way Obama has handled the Keystone XL pipeline debate over the past few months. He has pretty much stated that the deciding factor will be weather or not Keystone XL will directly lead to increased oil sands production and the associated increase in carbon emissions. If the oil sands is getting increased pipeline capacity with or without Keystone, as this West/East project suggests, then it seems more likely that Obama will approve it.

[GGG]

Originally Posted by Brewmaster

I wonder if the timing of this announcement has anything to do with the way Obama has handled the Keystone XL pipeline debate over the past few months. He has pretty much stated that the deciding factor will be weather or not Keystone XL will directly lead to increased oil sands production and the associated increase in carbon emissions. If the oil sands is getting increased pipeline capacity with or without Keystone, as this West/East project suggests, then it seems more likely that Obama will approve it.

I think also its a hedge against Keystone being delayed until the next republican president. This way you have many pipelines in the works and you build as you get approvals.

This also puts pressure on BC as they can see there is a market outside of going though them. It reduces BC's ability to blackmail Alberta.

More pipelines is a good thing. The quebec rail explosion really woke people up to the dangers of rail so I think some of the attitude has changed.

[taffeyb]

I'm so sick of Obama dithering over Keystone. Hopefully not one red cent (or nickle) of the $12B is spent sourcing materials and/or labor from the US.

Had to note that I saw an interview on CBC where one one of those "greenies" were expressing the dangers of pipelines and made mention of the Pegasus pipeline leak in the US. Funny thing is that she mention that the pipe built in the 1950's. Duh. All the more reason for a new pipeline. Sorta like comparing the environmental impact of a car built today versus a car built in 1960...

[jofillips]

this has to be great news for alberta if it goes ahead!

[Regorium]

http://www.theglobeandmail.com/repor...board/follows/

What is the point of being in a single country when every province tries to extort each other for every little thing?

[Ducay]

Originally Posted by Regorium

http://www.theglobeandmail.com/repor...board/follows/

What is the point of being in a single country when every province tries to extort each other for every little thing?

I think people are trying to sensationalize the Ont gov'ts statements. They're just looking for their fair share, not an extortion like BC. Heck, even the statement says "we have no way of stopping it, but want to voice our concerns". The line through Ontario is already there, so they have even less ability to slow things down.

The real test will come from Quebec, as new line is needed through there, and they're a bunch of greedy-greeds.

[peter12]

Originally Posted by Ducay

They haven't even submitted it to the government for the various levels of approvals and environmental review, and wont for at least another year. There has already been vocal opposition to the plan, so this is hardly a done deal. Luckily its not a brand new line, so that will cut a lot of the review.

Chances are it will be approved, but we've seen lately nothing is a sure thing.

Cutting this baby cross-country is going to mean passing not only federal review standards, but every single province's O&G Act, and Environmental Protection Act. I'll have work forever!

[CaptainCrunch]

Originally Posted by Ducay

I think people are trying to sensationalize the Ont gov'ts statements. They're just looking for their fair share, not an extortion like BC. Heck, even the statement says "we have no way of stopping it, but want to voice our concerns". The line through Ontario is already there, so they have even less ability to slow things down.

The real test will come from Quebec, as new line is needed through there, and they're a bunch of greedy-greeds.

Too bad we don't have any leverage on them, what are we gonna do put a tariff on stripper exports?

[Ducay]

Originally Posted by CaptainCrunch

Too bad we don't have any leverage on them, what are we gonna do put a tariff on stripper exports?

That would be double taxation, there's already tariffs on softwood

[nik-]

Shouldn't the Energy Minister of Ontario know that people don't really call it the "Tar Sands" typically unless they're using it in a negative connotation?

[CaptainCrunch]

Maybe we should start calling Ontario the home of the acid lakes for all the damage their manufacturing is doing to the Great Lakes.

Or Smogtario, for all of the crap their manufacturing segment puts into the air.

I mean what's fair is fair.