Enbridge Tells NEB It Has No Shippers' Agreements

Josette Wier

Dear Editor:

On June 27 last week, Enbridge filed with the NEB the documents required by conditions #20 and 21 regarding their Transportation Service Agreements (TSA).  They acknowledge “ As of July 2014, Northern Gateway has not executed firm TSAs with its prospective shippers”.  In short there are no agreements in place and they are uncertain when there will be.   I cannot avoid contrasting this announcement with the CBC piece on August 24, 2011 titled “Northern Gateway Pipeline Fully Booked” which states:

“ Calgary-based oil pipeline operator Enbridge said Wednesday it has lined up enough shippers to fill its proposed Northern Gateway pipelines project that would ship oilsands crude to the west coast for transport to Asian markets. Enbridge did not identify which Asian and Canadian companies have committed to use the $5.5-billion facility, but Chinese refining giant Sinopec has said it is on board with the project. Companies have fully subscribed to long-term service on both a 525,000-barrel per day line carrying crude from Alberta to Kitimat, B.C., as well as a smaller line that would bring imported condensates inland. Janet Holder, Enbridge’s executive vice-president of Western access, called the shipper agreements “a major step forward” for the project, which she said would enable Canadian energy companies to fetch a better price for the crude they produce”.

So these announcements were at best, pure fiction in all likelihood designed to reassure Enbridge investors who must be very nervous about this doomed project.  Unfortunately for these investors, the public in British Columbia has learned to separate the facts from the fantasy world of advertising and corporate spin.   In the case of the Northern Gateway proposal,  and despite the Harper government’s preordained approval, corporate spin is a about all they have left. 

Dr. Josette Wier

Smithers, BC

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