It’s Alberta vs. B.C. in Kinder Morgan pipeline expansion

Alberta Premier Rachel Notley has announced “war” against B.C.’s plan to restrict shipments of oilsands crude in pipelines through new rules.

Notley is now threatening to take B.C. to court, calling the restriction unconstitutional and illegal.

Last week, B.C.’s Environment Minister George Heyman announced plans to stop increases to diluted bitumen shipments off the province’s coast until there is a detailed study of its effects in water. Cancellation of the project was a n election promise that Horgan campaigned for, criticizing the then B.C. premier Christy Clark’s B.C. Liberals for giving it the green signal.

Notley held an emergency meeting last week to discuss what legal and economic punches Alberta can pull in this self-proclaimed war against B.C.

“The government of Alberta will not — we cannot — let this unconstitutional attack on jobs and working people stand.” – Rachel Notley, Alberta Premier

Since then, Alberta suspended talks over $500 million in annual electricity imports from B.C. She says this is one of the fist steps the province will be taking in its fight to push for the pipeline expansion. Nearly $500 millions of B.C.’s finances may be affected by this, she said, addressing a news conference.

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Notley says she spoke with Prime Minister Justin Trudeau, who was in B.C. early February, over the phone.

“We’re prepared to do what it takes to get this pipeline built — whatever it takes.” – Rachel Notley, Alberta Premier

More delays for Kinder Morgan

The new rules are set to create additional uncertainty for Kinder Morgan Canada’s $7.4 billion Trans Mountain pipeline expansion.

The already-delayed expansion project will nearly triple the capacity of its pipeline to 890,000 barrels a day.

According to Kinder Morgan, the Trans Mountain pipeline system (TMPL) is the only pipeline system in North America (since 1953) that transports both crude oil and refined products to the west coast. TMPL moves product from Edmonton, Alberta, to marketing terminals and refineries in the central British Columbia region, the Greater Vancouver area and the Puget Sound area in Washington state, as well as to other markets such as California, the U.S. Gulf Coast and overseas through the Westridge marine terminal located in Burnaby, British Columbia.

The Burnaby terminal is the terminus of the TMPL mainline. It receives both crude oil and refined products for temporary storage and distribution through separate pipelines to local terminals, a refinery and the Westridge marine terminal. The Burnaby terminal has 13 storage tanks and can handle volumes of approximately 1.685 million barrels (268,000 m³).

Notley says the expansion has been approved by the federal government.

“Just because the B.C. government, in coalition with the Green Party, doesn’t like the decision gives them absolutely no right to ignore the law or… change the rules at half-time based on a whim.” – Rachel Notley, Alberta Premier

Early this year, Kinder Morgan Canada said the expansion project could be a year behind schedule as it continues to battle delays and new regulations.

Depending on legal and permit approvals, the company says the project could be completed by December 2020, adding that it has reduced funding to the project in2018.

In December 2017, the National Energy Board ruled in its favour, allowing it to seek local permits directly from the regulator rather than from opposing municipalities like Burnaby. The city of Burnaby has refused to issue routine permits for site clearing and tree cutting.

Last week, Trudeau addressed a town hall meeting in Nanaimo B.C., where attendees often booed him when he spoke about the pipeline.

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The project has also received extensive criticism from First Nations, as well as environmental groups.

Kinder Morgan Canada has maintained that if the project faces repeated regulatory objections, it will not proceed with the expansion.