Canada's Liberal government has introduced legislation for a moratorium on oil tanker traffic along the northern coast of the British Columbia province, the country's transport department said May 12, delivering on an election promise.
Canadian Prime Minister Justin Trudeau ordered the ban soon after the election in 2015, in which he took power on a pledge to balance resource development with protecting the environment.
The May 12 bill will likely pass because Trudeau's Liberals hold a majority in Parliament.
Trudeau's orders for the ban effectively slammed the door on Enbridge Inc.'s (NYSE: ENB) Northern Gateway Pipeline, a project facing massive development hurdles that was to deliver oil to the north coast for export via tankers.
RELATED: Canada Vote May Present Whale Of Dilemma For Kinder
The move is part of a Liberal plan to toughen response to oil spills at sea. The plan was announced last year days before Trudeau formally rejected Northern Gateway, but approved another pipeline project through British Columbia, Kinder Morgan Inc.'s (NYSE: KMI) Trans Mountain expansion.
According to Transport Canada, vessels carrying less than 12,500 metric tonnes of crude or other oils will be exempt from the tanker ban, so as to ensure northern communities can receive shipments of heating oils and other products.
"The legislation proposes strong penalty provisions for contravention that could reach up to CA$5 million (US$3.65 million)," according to the department.
The ban does not apply to the south coast, which will likely see increased tanker traffic if Trans Mountain goes online.
Whether that happens according to schedule, however, has become uncertain after British Columbia's pro-energy Liberals, unaffiliated with Trudeau's federal party, lost their majority in a provincial election on May 9.
While absentee ballots still need to be counted in the close race, if the current seat count in the provincial legislature holds, the future of key energy projects in British Columbia will be pitted against the ability of the Liberals to work with the third-party Greens. (US$1 = CA$1.3711)
Recommended Reading
New US Rules Seek to Curb Leaks From Drilling on Public Lands
2024-03-27 - The U.S. Interior Department finalized rules aimed at limiting methane leaks from oil and gas drilling on public lands.
DOE Considers Technip, LanzaTech For $200MM ‘Breakthrough’ Technology Award
2024-03-25 - The U.S. Department of Energy funding will be used to develop technology that turns CO2 into sustainable ethylene.
Energy Transition in Motion (Week of March 22, 2024)
2024-03-22 - Here is a look at some of this week’s renewable energy news, including a new modeling tool for superhot rock.
EQT’s Toby Rice: US NatGas is a Global ‘Decarbonizing Force’
2024-03-21 - The shale revolution has unlocked an amazing resource but it is far from reaching full potential as a lot more opportunities exist, EQT Corp. President and CEO Toby Rice said in a plenary session during CERAWeek by S&P Global.
Investors: Energy Transition is on Policy-driven Life Support
2024-03-20 - Injecting private capital into the energy transition is worrisome because some projects couldn’t survive without government incentives, panelists said at CERAWeek by S&P Global.