CALGARY — Janetta McKenzie, director of the oil and gas program at the Pembina Institute, made the following statement in response to the announcement of the Pacific Link pipeline as a project of national interest under the Building Canada Act:
“The Pacific Link pipeline does not meet the criteria to be designated a project of national interest under the Building Canada Act as it will not ‘contribute to clean growth and to meeting Canada’s climate objectives.’ Even if the downsized Pathways carbon capture project is one day operational, the new pipeline will substantially increase greenhouse gas emissions from the Alberta oil sands, which are already Canada’s single largest driver of climate change.
“Whether the pipeline will ‘provide economic or other benefits to Canada’ is uncertain, given that Canadian taxpayers are being asked to pay $35-$43 billion in construction costs without a workable toll structure to recover their money. Canadians should closely examine why the private sector has refused to invest in this high-risk, high-cost project. The weakening outlook for global oil demand has made the business case for this project impossible to sell to shareholders.
“The Prime Minister has repeatedly told Canadians he intends to build a larger and more diverse network of global trading relationships. The Pacific Link pipeline does not help achieve this goal; it locks Canadians into an expensive gamble on a single export product with a doubtful future.
“Canada’s national interest is better served by accelerating work on interties to connect our fragmented provincial power grids, large-scale renewable power generation like the Churchill Falls dam and the Wind West offshore project, and by rapidly electrifying our homes and vehicles. Seizing the opportunities of the global energy transition requires the type of rapid action and large-scale investment that the federal government has committed to oil export.”
Quick facts
- Global private sector investment in clean energy surpassed global private sector investment in fossil fuels in 2016. It’s now roughly double, and pulling further ahead every year.
- The chair of China’s largest refinery business recently told investors that China’s oil demand peak probably happened in 2025.
Contact
Benjamin Alldritt
Senior Communications Lead, Oil & Gas
587-328-1955
Background
Report: A Pipeline in Search of a Market
Blog: Don’t gamble Canadians’ money on a risky pipeline
