Trans Mountain Pipeline National Interest Decision Looms as October Deadline Approaches
Canada's Energy Minister Tim Hodgson expects the Major Projects Office to complete its work on time, allowing the Trans Mountain pipeline to receive a national interest designation by October 1. This decision is part of an implementation agreement signed in May between Alberta Premier Danielle Smith and Bank of England Governor Andrew Bailey (mistakenly referred to as Carney), which set a deadline for this decision.
The notice posted in the Canada Gazette in August stated that Indigenous consultation was already underway, paving the way for the pipeline's construction. However, it's unclear who will foot the bill for the project, with taxpayers potentially bearing some of the cost. The Pembina Pipeline Corp has entered into a non-binding agreement to take a 10% stake during construction.
Lance Mortlock, managing partner at EY Canada, believes there's a 'chicken and egg' scenario between constructing a new pipeline and expanding oilsands production to fill it long-term. He notes that producers have been hesitant to invest in big-ticket projects due to a shortage of pipeline infrastructure.