A National Energy Board member from P.E.I. says it’s time to take another look at the Energy East pipeline.
Jamie Ballem, a former Progressive Conservative environment minister in the Pat Binns’ government, said if the federal government is prepared to build a pipeline through British Columbia to get Alberta oil to the west coast, why would it not consider a pipeline through Quebec and New Brunswick to get that same oil to the Irving refinery in Saint John.
“I’m encouraged that we do have people of all political stripes talking about revising (Energy East),” Ballem told the Rotary Club of Charlottetown this week, adding he was not part of the panel that reviewed Energy East’s application.
“Why wouldn’t we buy Canadian? Why wouldn’t we use Canadian resources?”
Energy East is a proposed 4,600-kilometre pipeline that would carry Alberta bitumen to Saint John, N.B. The proposal would have seen a million barrels of oil travel through the pipeline a day.
The project died last October.
The Trudeau government’s decision in May to invest $4.5 billion to take ownership of the Trans Mountain pipeline, which would take Alberta oil through British Columbia, has on one hand renewed hopes that Energy East may be revived and on the other hand cast doubts about the need for such a project if Trans Mountain does get constructed.
Just the facts
– 1 barrel of oil equals 159 litres
On Thursday, the federal Court of Appeal quashed the approval of the contentious Trans Mountain pipeline expansion.
Ballem believes there is still a business case to build the Energy East pipeline. He said the application for Energy East was 30,000 pages, there was a lot of time and money invested into the project.
“As an individual and a resident of Atlantic Canada, I see a whole lot of positives.”
In fact, Ballem questions whether it was a business decision that prompted TransCanada to pull out of Energy East.
“They had their contracts signed for supplies and buyers at the other end… It was a political decision and unfortunately we’re the losers.”
The National Energy Board regulates oil and gas pipelines in Canada.
Ballem’s term with the board is up, but he will continue to work on existing files until those projects are completed.
Proposed legislation before the House of Commons could see the National Energy Board replaced by the Canadian Energy Regulator.
Ballem said Trans Mountain has a solid track record, so he doesn’t have any concerns about the safety of its pipelines. He points to Lac-Megantic, Que., and the devastating explosion that killed nearly 50 people. The tragedy happened after a freight train carrying crude oil rolled down a hill, derailed and exploded leveling part of the town. That oil was destined for Saint John, N.B.
“There is a hundred times more oil spilled from rail and a thousand times more spills from trucking, small quantities at a time, but still a cumulative effect.”
During his address, Ballem said many Canadians will fight the construction of new pipelines, but there is little discussion about aging pipelines, some of which are more than 50 years old.
“More than half of the pipes we regulate are more than 30 years old. We have pipes in the ground that are 50 and 60 years old. And yet, protesters are protesting the building of new pipelines, replacing old pipelines.”
