Activists celebrate as the Energy East Pipeline is cancelled

energy east mapOn October 5, TransCanada Pipelines issued a press release , announcing that it would no longer proceed with the proposed Energy East pipeline and Eastern Mainline projects.  Accordingly, the National Energy Board Hearing Process has been closed, although documents remain on its website.  Below is some of the reaction that has poured forth, including: “TransCanada terminates Energy East pipeline” and  “Disappointment and delight mark the end of Energy East Pipeline”  in the National Observer (Oct. 5); “Climate Hawks celebrate as TransCanada abandons Energy East pipeline” from Energy Mix.   The Council of Canadians had conducted a 5-year campaign against Energy East: their reactions and those of their allies appear in “WIN! Energy East tar sands pipeline defeated!”  ;  “Voices from the Energy East Resistance”  (Oct. 6)  and “Diverse Groups Opposed to Energy East Celebrate Project’s Cancellation” .  The common message is exemplified by Grand Chief Serge Simon of the Mohawk Council of Kanesatake on behalf of the 150 First Nations and Tribes who have signed the Treaty Alliance Against Tar Sands Expansion, who is quoted as saying: “Both the Northern Gateway fight and this Energy East one show that when First Nations stand together, supported by non-Indigenous allies, we win …. “So that’s two tar sands expanding mega-pipelines stopped in their tracks but it will be a hollow victory if either Kinder Morgan, Line 3 or Keystone XL are allowed to steamroll over Indigenous opposition and serve as an outlet for even more climate-killing tar sands production.”  (and for more on that, read “Energy East cancellation resonates for opponents of Trans Mountain expansion in B.C.”  in the National Observer.

Commentators trying to explain TransCanada’s decision focus on three principle reasons: the economics of falling oil prices, regional political forces, or the regulatory burden of pipeline approvals in Canada (especially since the Energy East review was  required to account for upstream and downstream emissions).  From the Globe and Mail, an editorial:  “The death of Energy East was a Business Decision – Swimming in Politics” , which attributes the decision to  Quebec opposition to Energy East, and the likely go-ahead of the Keystone XL pipeline in the U.S.  The Editorial states: “Mr. Trump appears to have solved most of the Canadian oil industry’s pipeline shortage, making Energy East no longer economically necessary. The American President…. has also temporarily solved one of the Trudeau government’s, and Canada’s, most challenging political problems.” For a view of the political dimensions within Canada, read  “Energy East pipeline is dead, fallout in Alberta will be measurable” in Rabble (Oct. 6) . Finally, three overviews of the issues:”Regulations alone didn’t sink the Energy East pipeline” by Warren Mabee,Queen’s University and ACW Co-Investigator in The Conversation (Oct. 15);  “Five Things you need to know about the Cancellation of the Energy East Oilsands Pipeline” from DeSmog Canada, and “Energy East’s cause of death: Business, politics or climate?“, from CBC News, which describes the regional differences via reaction from Canadian provincial premiers.

 

Energy East Pipeline: Transporting Crude Oil for Export, not Processing

Contrary to the economic projections put forth by TransCanada Pipeline, a new report released on March 18 contends that the proposed Energy East pipeline will be used primarily as a means to export crude oil, rather than to refine it in Canada.

The Energy East project would convert 3,000 kilometres of existing natural gas pipeline in Saskatchewan, Manitoba, and Ontario to carry crude oil, and also would build over 1,500 km of new pipelines through Quebec and New Brunswick, with the objectiveenergyeastreport of carrying 1.1 million barrels of crude oil per day. In September 2013, an industry-sponsored report by Deloitte & Touche consultants projected job creation in the order of 10,000 jobs in development and construction, and 1,000 ongoing jobs in the operational phase.

TransCanada’s Energy East Pipeline: For Export, Not Domestic Gain argues that the crude delivered by Energy East would exceed the processing capacity of existing Canadian refineries, given that they also source crude from the U.S., the Newfoundland offshore, and in the future, the newly-approved Line 9 pipeline project. The authors argue that new refineries are unlikely to be built in Canada, and point to TransCanada’s proposed plans for export terminals at Gros Cacouna, Québec (east of Québec City) and Saint John, New Brunswick to prove that the intended purpose of the oil is export.

LINKS

TransCanada’s Energy East Pipeline: For Export, Not Domestic Gain, prepared jointly by the Council of Canadians, Ecology Action Centre, Environmental Defence and Equiterre, is available at: http://www.canadians.org/publications/transcanada%E2%80%99s-energy-east-export-pipeline-not-domestic-gain

CBC summary is at: http://www.cbc.ca/news/business/energy-east-pipeline-benefits-overblown-report-says-1.2576782

Energy East: The Economic Benefits of TransCanada’s Canadian Mainline Conversion Project (Sept. 2013) is on the Deloitte website at: http://www.energyeastpipeline.com/wp-content/uploads/2013/09/Energy-East-Deloitte-Economic-Benefits-Report.pdf

Recommendations for Québec’s Next Energy Policy Emphasize Energy Efficiency, Support Pipelines

A 2-person commission appointed to review energy issues in Québec reported to the government in January 2014, generally recommending a change in direction to emphasize energy efficiency and limit new infrastructure investment. According to a report in the Montreal Gazette on March 2 (http://www.montrealgazette.com/technology/Quebec+needs+energy+course+panel/9570190/story.html), the recommendations included: set a goal of reducing greenhouse-gas emissions by 75 per cent by 2050; study the possibility of suspending phases 3 and 4 of the Romaine River hydroelectric project; stop or suspend wind, cogeneration and small-dam projects that have not yet been built; support TransCanada’s west-east oil pipeline, conditional on study by the province’s environmental review board; support Enbridge’s Line 9B oil pipeline; improve public transit; update the provincial building code to improve the energy efficiency of buildings; and support the construction of a natural-gas pipeline connection to the Gaz Métro network to replace heating oil with natural gas. The Energy Consultation website is at: http://consultationenergie.gouv.qc.ca/english/ (English version), and http://consultationenergie.gouv.qc.ca/ (French version). The report and briefs presented to the Commission are available only in French.

Energy East Pipeline: Job Creation Projections Provided by TransCanada

TransCanada Pipelines released an economic analysis of their Energy East pipeline project on September 9, providing detailed estimates of direct, indirect and induced job creation, as well as the impact on tax revenues and Canadian GDP. The report was prepared by Deloitte and Touche LLP, using a Statistics Canada input/output model. It forecasts more than 10,000 full-time jobs will be directly supported during the development and construction phase (2013 to 2018), with approximately half of the jobs in construction, engineering, architectural, and oil and gas support services industries. In the operational phase, approximately 1,000 full-time jobs are forecast.

Despite the enthusiasm of federal politicians and New Brunswick Premier David Alward, CBC and the Globe and Mail have reported skepticism about the job creation numbers by New Brunswickers. There is also serious opposition from Ontario and Quebec, based on environmental and safety concerns.

LINKS

Energy East: The Economic Benefits of TransCanada’s Canadian Mainline Conversion Project at the Deloitte website at: http://www.energyeastpipeline.com/wp-content/uploads/2013/09/Energy-East-Deloitte-Economic-Benefits-Report.pdf; A briefer (2-page) Backgrounder is available at: http://www.energyeastpipeline.com/wp-content/uploads/2013/09/Energy-East-Economic-Analysis-Backgrounder.pdf.

“TransCanada Touts National Benefits of Energy East Plan” (Sept. 10) in the Globe and Mail at: http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/energy-east-pipeline-will-create-2000-jobs-transcanada/article14213238/

Energy East Pipeline may create 10,000 Jobs, Study Says (Sept. 10) is at the CBC website at: http://www.cbc.ca/news/canada/new-brunswick/energy-east-pipeline-may-create-10-000-jobs-study-says-1.1699614

“N.B. Mayor adds to Chorus of Dissent against Energy East Pipeline Plan” (Sept. 12) in the Globe and Mail at:http://www.theglobeandmail.com/news/politics/nb-mayor-adds-to-chorus-of-dissent-against-energy-east-pipeline-plan/article14298359/

“TransCanada’s Eastern Path hits Snag in Ontario”(Aug. 22) in the Globe and Mail is at: http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/transcanadas-eastern-path-hits-roadblock-in-ontario/article13909022/

Canadian Pipelines: Funding New Eastern Markets for Western Bitumen Sparks Widespread Opposition

The Energy East pipeline project proposal by TransCanada Pipeline is being promoted by Premier Redford of Alberta and New Brunswick’s David Alward. The proposal involves the inversion of 3,000 kilometres of existing pipeline from natural gas to crude oil, as well as the construction of 1,400 kilometres of new pipeline from Quebec to the Irving refinery in Saint John, New Brunswick. The project could carry as much as 850,000 barrels of crude oil per day. New Brunswick’s recent budget highlighted it as part of the province’s “Brighter Future”.

Echoing the recent vocabulary of Alberta Premier Redford, N.B. Premier David Alward has said “This project is potentially as important to Canada’s economic future as the railway was to its past. If we proceed, this project will strengthen our national and provincial economies and create jobs and economic growth today and for generations to come.”

Read Premier encouraged by important step in West-East pipeline (April 2) at CBC New Brunswick website at:http://www2.gnb.ca/content/gnb/en/news/news_release.2013.04.0274.html; New Brunswick budget document, Managing Smarter for a Brighter Future (March 26, 2013) at: http://www.documentcloud.org/documents/627691-budget-2013-14-final-e.html#document/p2 , and “TransCanada’s West-East oil pipeline gains momentum” in the Globe and Mail, (April 2, 2013) at:  http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/transcanadas-west-east-oil-pipeline-gains-momentum/article10663042/.

A related protest is scheduled for Montreal on April 21: Marche pour la Terre/ Walk for the Earth is the result of a collaboration between AQLPA, the David Suzuki Foundation, Earth Day Quebec, ENvironnement JEUnesse, Equiterre, Greenpeace and Nature Quebec, along with the Idle No More movement. They will be protesting any expansion of the tar sands and the presence of pipelines in Quebec, along with many other demands for improved environmental policies and protections. See the website: in French at: http://marchepourlaterre.org/ and in English at: http://marchepourlaterre.org/en/.

Another East-West pipeline, Enbridge Line 9, has drawn criticism from environmentalists since November 2012, when Enbridge applied to the National Energy Board to reverse the flow of oil and boost the line’s capacity from 240,000 barrels per day to 300,000. Line 9 is a pipeline built in the 1970’s which currently runs between Montreal and Westover, Ontario, through highly populated areas and across water sources, including the three rivers of the Greater Toronto area. Because of the danger of a disastrous oil spill, especially given Enbridge’s historic spill in Kalamazoo, Michigan in 2010 and the toxicity of diluted bitumen that it could carry, the “Stop Line 9” movement has drawn large protests in communities across the proposed route.

On March 21, the following groups from Quebec and Ontario were allowed to submit their “List of Issues” to the NEB : Équiterre, Environmental Defence, Climate Justice Montreal, Sierra Club of Canada, Greenpeace Canada, and Association québécoise de lutte contre la pollution Atmosphérique. The U.S. Environmental Resources Defense Council is also involved because of the potential for oil to travel from Montreal across New England, via the existing connection with the Portland-Montreal pipeline.

Read the Primer on the West-East Pipeline (April 8, 2013) by Maryam Adrangi at the Council of Canadians website at:http://canadians.org/blog/?p=20308Enbridge’s Oil Sands Pipeline Plan: All pain and no gain for Ontario at the Environmental Defence website at: http://environmentaldefence.ca/enbridgestarsandspipelineplan; Natural Resources Defense Council press release (March 26, 2013) at: http://equiterre.org/sites/fichiers/nrdcrelease_-_us_group_submittal_to_neb_line_9_reversal_project_review-nrdc-march_26-final-english.pdf, and visit the Stop Line 9 Toronto website at: http://www.stopline9-toronto.ca/ for links to major resources and other organized groups at: http://www.stopline9-toronto.ca/line9resources.php.