Enbridge is evaluating a potential new crude oil export pipeline following a policy agreement between the Canadian federal government and Alberta. The project would focus on expanding export capacity to Asian markets, potentially adding a route capable of moving 1 million barrels per day.
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The agreement between Ottawa and Alberta on carbon pricing is the real story here. Without that regulatory alignment, a project of this scale would be a non starter. It will be interesting to see if the carbon costs are baked into the shipping contracts or if they expect the shippers to absorb the hit.
Permitting is where this likely dies or gets delayed for a decade. Even with government support, the environmental hurdles for a new West Coast route are massive. Does anyone have a realistic timeline for the actual groundbreaking?
Enbridge keeps talking about its renewable portfolio and hydrogen, but then weighs a massive new oil pipe. The capital allocation here tells you where their actual priorities are. Hard to pivot to low carbon when you are still building legacy fossil fuel infrastructure.
