Saskatchewan joins Alberta in BC squeeze

April 24, 2018
Saskatchewan’s government has joined Alberta in implicitly threatening to restrict energy movement to British Columbia, raising stakes in a dispute over expansion of the Trans Mountain pipeline system.

Saskatchewan’s government has joined Alberta in implicitly threatening to restrict energy movement to British Columbia, raising stakes in a dispute over expansion of the Trans Mountain pipeline system.

Energy and Resources Minister Bronwyn Eyre introduced legislation establishing permitting procedures for individuals or corporations seeking to move oil, natural gas, or refinery products out of the province.

“The bill responds to the inaction by the federal government to assert its jurisdictional authority to ensure the Trans Mountain Expansion Project proceeds,” the energy ministry said in a news release that didn’t specify BC as the target.

The BC government is blocking the project, for which Kinder Morgan Canada Ltd. received National Energy Board approval 18 months ago.

The planned tripling of Trans Mountain capacity between Alberta and Burnaby, BC, would provide a needed connection to global markets for production of bitumen and heavy oil from Alberta and Saskatchewan.

Alberta introduced legislation like its neighboring province’s earlier this month (OGJ Online, Apr. 17, 2018).

The Saskatchewan energy ministry said the government considers the bill’s authority to restrict energy movement out of the province a last resort, to be used “only if the Trans Mountain pipeline continues to be stalled by provincial obstruction and federal inaction and if the Alberta government acts upon its similar legislation.”

It said, “Lack of access to tidewater cost Saskatchewan oil producers an estimated $2.6 billion and cost the province an estimated $210 million in taxes, royalties, and other revenue last year.”

Saskatchewan is Canada’s second-largest oil producer, behind Alberta. The oil and gas industry accounts for about 15% of its gross domestic product.