N環球 
Hodgson promises Pacific Link pipeline 'will get built' regardless of markets and geopolitics
Energy Minister Tim Hodgson told CTV's Question Period that the Pacific Link pipeline to the West Coast will be built, revealing the early process is expected to cost about $4 billion split between two levels of government.
Why it matters
Energy and Natural Resources Minister Tim Hodgson promised in an interview on CTV's Question Period, airing Sunday, that the Pacific Link oil pipeline to the West Coast will get built regardless of potential future market shifts and geopolitical changes. "We are building pipelines, and we will build this pipeline for the people of Canada," he said.
Full report
On Thursday, Prime Minister Mark Carney and Alberta Premier Danielle Smith announced Pacific Link as the first officially designated "project of national interest" under the Building Canada Act, with a September 2027 target for construction to begin.
Carney insisted Thursday: "The Canadian taxpayer is going to make a lot of money off this pipeline." But according to a government official in a technical briefing, the early process is estimated to cost $4 billion split between the two levels of government. Pembina Pipeline Corp. has expressed interest in a 10 per cent private-sector stake, with the option of up to another 10 per cent once the pipeline is in operation.
Asked by host Vassy Kapelos why Canadians should trust the pipeline will be built when the prime minister said less than a year ago it would not go forward without a private proponent, Hodgson replied: "We're in the middle of the worst energy crisis in the history of the modern world, as defined by the International Energy Agency." He pointed to the Trans Mountain Expansion as proof such investments pay off, adding his impression from the IEA president is that demand for oil will continue "well into the future."
Hodgson said the proponents will hold an open season, likely next spring, when shippers will be asked to commit to long-term contracts to take oil over the pipeline. If shippers do not commit, he said: "We'll deal with that at the time." He also noted two projects already under construction: the 89-kilometre Taylor-to-Gordondale diluent pipeline from British Columbia to Alberta, and the $4-billion Sunrise pipeline expansion.
Source: CTV News' Question Period interview, aired Oct. 4.
💬 Comments
No comments yet. Be the first!