Trans Mountain: public interest queried

A new study from Simon Fraser University and Living Oceans Society says that Kinder Morgan's Trans Mountain pipeline expansion project does not meet the National Energy Board's requirement of being in the public interest.

The study says the project, which would triple Kinder Morgan's capacity to carry oil between Alberta and Burnaby, B.C., could come at a net cost to Canada of between CAN$4.1 billion and CAN$22.1 billion.

Those costs are associated, not only with damage to the environment in the form of oil spills and greenhouse gas emissions, but also with building too much pipeline capacity, it says.

"Right now if you look at the projects that the National Energy Board has approved or is under consideration, these pipeline projects will exceed demand by about 2.5 million bpd by 2020," said Tom Gunton, SFU Director of the Resource and Environmental Planning Program, who led the study.

"Investing some CAN$20 billion in potentially empty pipeline space imposes a very large cost on Canada, to the oil and gas sector, to the Canadian public in terms of reduced taxes and royalties."

Gunton and his team argue that, by creating unnecessary capacity and diverting oil products from existing pipelines, oil and gas producers will lose out.

The latest study, is in stark contrast to Kinder Morgan's assessment of the project, which argues enormous economic benefits from the project, and for which it says environmental risks, particularly from oil tankers, will be mitigated by increased tug escorts in inland waters and beefed-up spill response capacity.

Kinder Morgan says the CAN$5.4 billion Trans Mountain project, which will triple capacity of its existing pipeline by twinning the pipeline to reach markets in Asia and the US, will provide CAN$45 billion in increased revenues to producers over 20 years and CAN$14.7 billion in additional revenue for government.

Edited from various sources by Elizabeth Corner

Sources: CBCVancouver Sun

Published on 02/06/2015

Get your FREE Oilfield Technology magazine »

Get your FREE trial of Hydrocarbon Engineering magazine »

Get your FREE trial of World Pipelines magazine »


Related articles

Kinder Morgan fails to answer Trans Mountain questions?

City of Vancouver says company has failed to answer 291 questions about the project.

Trans Mountain Pipeline: tariff amendments will provide greater clarity to shippers

The NEB has approved an application to revise the procedures for verifying the validity of nominations for shipments on the Trans Mountain Pipeline.

Trans Mountain pipeline workers ordered to down tools

The city of Burnaby remains in opposition to Kinder Morgan over the pipeline extension project.

Kinder Morgan begins survey work for Trans Mountain Pipeline expansion

Kinder Morgan’s proposed US$ 5.4 billion expansion project would result in an extra 590 000 bpd of oil passing through Metro Vancouver.

Recommend magazines

  World Pipelines