Oil and gas sector cautious as deadline on Trans Mountain decision nears

Trudeau government expected to announce whether it will approve pipeline for second time on Tuesday

Pipes are seen at the Kinder Morgan Trans Mountain facility in Edmonton, Alta., Thursday, April 6, 2017. (THE CANADIAN PRESS/Jonathan Hayward)

Observers on the front lines of Western Canada’s oil and gas sector are looking forward to what’s widely expected to be approval of the Trans Mountain pipeline expansion on Tuesday while acknowledging the decision by Ottawa won’t solve all problems.

CEO Clayton Byrt of Pimee Well Servicing LP, a service rig company owned by six northern Alberta First Nations, says approval of the pipeline is a “big deal” because it will encourage investment by the oilsands producers he counts as customers.

He says more activity will support Pimee’s ability to retain its 140 employees — almost all Indigenous — and eventually grow the company to continue to offer good jobs to First Nations members.

The company counts Imperial Oil Ltd. and Cenovus Energy Inc. among its customers, both of whom have delayed building or completing steam-driven oilsands projects because of uncertainty about how they will get the oil to market.

READ MORE: Is Trans Mountain a pipeline to prosperity for Indigenous communities?

Analyst Samir Kayande, a director with RS Energy Group, says the expansion to triple capacity of the existing Trans Mountain pipeline will help with market access when it comes on stream but that likely won’t happen until 2022 and could be held up by more legal challenges.

He says the pipeline isn’t big enough to fix Western Canada’s oil transportation woes on its own, nor does it address the general downturn in energy investing in North America and the lower quality of Canada’s resources compared to premier U.S. oil and gas basins.

“Even though it’s positive and it’s important, the impact on the investment climate will probably be a little bit muted at least until you can actually start construction,” said Kayande.

“It really depends on what the next round of legal challenges looks like.”

The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Terrace Industrial Park build-out continues

Containerized LNG, forestry among potential manufactured goods

Body, burning truck found near Dease Lake

RCMP unsure if the two separate discoveries are related

CN train derailment cleared between Terrace and Prince Rupert

The CN mainline is now open, following a train derailment mid-way between… Continue reading

President and CEO leaving Coast Mountain College

Burt will say goodbye to CMNT come September

‘Tent city’ and homelessness a polarizing issue in Terrace

City of Terrace gives an update, says province should step in to help with housing, mental health

Rich the Vegan scoots across Canada for the animals

Rich Adams is riding his push scooter across Canada to bring awareness to the dog meat trade in Asia

A year later, ceremony commemorates victims of the Danforth shooting

It’s the one-year anniversary of when a man opened fire along the bustling street before shooting and killing himself

Japanese Canadians call on B.C. to go beyond mere apology for historic racism

The federal government apologized in 1988 for its racism against ‘enemy aliens’

B.C. VIEWS: NDP pushes ahead with Crown forest redistribution

This isn’t the time for a radical Indigenous rights agenda

Two dead in two-vehicle crash between Revelstoke and Golden

RCMP are investigating the cause of the crash

Ottawa fights planned class action against RCMP for bullying, intimidation

The current case is more general, applying to employees, including men, who worked for the RCMP

Alberta judge denies B.C.’s bid to block ‘Turn Off the Taps’ bill

He said the proper venue for the disagreement is Federal Court

Canadian high school science courses behind on climate change, says UBC study

Researchers found performance on key areas varies by province and territory

Most Read