Enbridge Warms Up to West Coast Pipeline After Canada-Alberta Deal
Enbridge Inc., a leading Canadian pipeline operator, has softened its stance on building a new oil pipeline to Canada's west coast. In an interview with Bloomberg Television, CEO Greg Ebel said his company 'definitely would consider' backing the project.
This shift in attitude comes after Prime Minister Mark Carney and Alberta Premier Danielle Smith signed a deal that sets out environmental rules for oil producers. The agreement includes a carbon tax that will rise slowly over time and a scaled-back version of a project to capture greenhouse gas emissions and store them underground.
The pipeline, which would carry one million barrels a day of Canadian oil to the coast of British Columbia, has been a contentious issue in Canada. However, Ebel said that new infrastructure is dependent on how oil producers react to the pipeline deal.
Smith told Bloomberg Television that the blocking of the Strait of Hormuz has bolstered Asian demand for new and reliable oil supplies - strengthening the case for a new Canadian pipeline.