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Winnipeg Free Press - PRINT EDITION

Pipeline route is safe, says Transport Canada

By: Lauren Krugel

Posted: 02/24/2012 1:00 AM | Comments: 0

CALGARY -- Huge oil tankers can safely travel in and out of the port of Kitimat, B.C., says a Transport Canada review of Enbridge Inc.'s controversial Northern Gateway project.

The department filed its report on Thursday to the regulatory panel weighing the $5.5-billion proposal, which would see Alberta crude shipped to the West Coast by pipeline and exported to Asian markets via a marine terminal at Kitimat.

"There will always be residual risk in any project," says the report.

But "no regulatory concerns have been identified for the vessels, vessel operations, the proposed routes, navigability, other waterway users and the marine terminal operations associated with vessels supporting the Northern Gateway project."

Northern Gateway has attracted fierce opposition from First Nations, environmental and other groups who fear an oil spill from the pipeline itself or from tankers sailing through narrow coastal channels could cause grave ecological harm.

"The proposed shipping routes are appropriate for the oil tankers that will be used at the proposed terminal," said the report, adding "there are no charted obstructions that would pose a safety hazard to fully loaded oil tankers.

It does point out there are some narrow areas where extra caution is needed for two-way traffic.

And it said there may be an increased threat to marine mammals, such as whales, along the shipping route, and encourages Enbridge (TSX:ENB) to take steps to minimize harm.

The project would see an additional 250 oil tankers arriving at Kitimat each year, which means Transport Canada would have to step up its monitoring, the report said.

The goal of Northern Gateway is to diversify Canada's customer base for crude exports beyond the only current customer, the United States. Northern Gateway would enable Asian countries to buy Canadian crude, ensuring the product gets a better price.

Community hearings into the proposal are underway, with thousands of people registered to speak.

-- The Canadian Press

EU ministers to rule

on fuel from oilsands

OTTAWA -- The Harper government and Canadian energy sector are girding for several more months of intense lobbying after European Union officials Thursday blocked a draft fuel law that would label the oilsands a dirtier form of crude.

With many of Canada's allies abstaining from the vote, European Union countries supporting the proposed Fuel Quality Directive failed to win enough support at a Thursday committee meeting of technical experts to have it pass.

However, there also wasn't enough support to kill the measure, so a council of EU ministers will now vote on the fuel directive, likely in June

-- Postmedia News

Republished from the Winnipeg Free Press print edition February 24, 2012 A16

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