Gallant Says Ottawa Should Pay For Emissions Analysis on Energy East Pipeline
SAINT JOHN – The federal government is willing to bear the costs of greenhouse gas emissions (GHG) studies for the proposed Energy East pipeline, Premier Brian Gallant told reporters in Saint John Tuesday afternoon.
Gallant, who was in town for a lunchtime speech hosted by The Saint John Region Chamber of Commerce, told the audience that he had made the funding request in a letter to Prime Minister Justin Trudeau.
“We’re getting a great signal that yes they are. The Trudeau government would be willing to pay for the extra analysis for the proponent when it comes to [greenhouse gas] emissions,” said Gallant.
On Monday night, The Daily Gleaner in Fredericton published an e-mailed response from a Natural Resources Canada spokesman, who said Ottawa has told the National Energy Board and TransCanada it would cover the costs.
Late last month, the National Energy Board announced that it would look at Energy East’s potential impact on greenhouse gas emissions, which was not part of the original mandate for review of the project.
RELATED: Energy East Pipeline Review Will Look At Upstream, Downstream GHG Emissions
In early September, TransCanada announced that it had temporarily suspended its application for Energy East.
The company said it wanted 30 days to study how the NEB’s decision to consider the Energy East’s contribution to upstream and downstream greenhouse gas emissions would affect “costs, schedules and viability.”
TransCanada called the changes to the regulatory process “significant,” and said that the entire project and related Eastern Mainline pipeline project could be cancelled.
RELATED: TransCanada Suspends Application for $15.7-Billion Energy East Pipeline
The CEO of TransCanada told Gallant that being asked to analyze greenhouse gas emissions was a “twist and turn” in the process, so Gallant said it’s only fair that the federal government cover the costs.
“We think it’s important that with this new twist and turn, the federal government could send a signal by ensuring they’re the ones that pay the cost of this new analysis,” said Gallant. “This would send a signal to the proponent but also to industry in general that this is going to be a fair and robust process.”
But Gallant stressed that TransCanada won’t necessarily restart its application as a result.
“I want to be clear there are many other factors being considered by TransCanada,” he said. “What other pipelines are at play, what other ones might go through, what are the world market conditions, what do their clients want from them and the industry [and] the price of oil.”
Gallant said TransCanada’s decision was “bad news” for proponents of the project, but he said the provincial government would try to help restart the process.
“We’re going to do what we can, and play the role that we can play,” he said. “One thing that TransCanada has asked us is to try and provide clarity, and they have indicated that the GHG analysis was something they thought was a ‘twist and turn’ to the process, and played a role in suspending their application.
“So we’re going to do everything we can to clarify that process, and help the proponent get through that process if they so choose to do so.”
David Duplisea, the CEO of the Chamber, said the federal government agreeing to bear the costs of the GHG analysis is a positive development, even if they don’t yet know if it will be enough to get TransCanada to restart its application.
“It is certainly a step in the right direction,” said Duplisea. “At least it shows a willingness to listen [on the part of the federal government]. We’re going to continue to push ahead on this.”
With files from The Canadian Press.