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Minister says Canada is waiting for private sector action on Pacific crude oil pipeline

Tim Hodgson, Canada's Minister of Natural Resources, said that the federal government had not received any private sector proposals to build a crude pipeline from the Canadian interior to the Pacific Coast. Hodgson stated in an interview with Calgary that the federal government has begun "concrete talks" with different proponents for projects that may be approved under the new legislation passed by the Canadian Senate at the end of June.

The bill aims to accelerate approval of natural resource and infrastructure project, as part of Prime Minister Mark Carney's campaign promise to transform Canada’s economy against U.S. Tariffs.

Hodgson refused to divulge specifics on the ongoing discussions, stating that the government had done its part in providing project proponents with the clarity they needed to invest.

He said, "Now the private sector is responsible for making those decisions." Alberta Premier Danielle Smith stated in June that the province was working on presenting the federal government a proposal and route for an upcoming new crude oil pipeline from Alberta to Port of Prince Rupert, British Columbia. Smith stated that the pipeline will be constructed in conjunction with the Pathways Alliance project for carbon capture and storage. Canada has been trying to diversify its oil exports in order to become less dependent on the United States. However, it has had difficulty finding private companies that are willing to build a pipe.

Hodgson said Friday that, if a tidewater pipeline is to be built, it will be in conjunction with the Pathways Project, which was proposed by an oil sands consortium to reduce emissions within Canada's energy industry. The project could cost anywhere between C$10 billion and C$20billion to build.

In recent years, the major Canadian oil pipelines faced regulatory delays and legal challenges that led to the cancellation of some projects, and spiraling costs in others.

Enbridge, Canada's largest pipe-line company, stated in an email statement sent last week that it would require significant changes to provincial and federal legislation -- including changes to Canada's industrial carbon policies -- before considering a new pipeline.

Hodgson refused to comment on whether the government might consider modifying or eliminating certain environmental and regulatory policies to encourage a proposed pipeline. (Reporting from Amanda Stephenson, Calgary; Editing and proofreading by Daniel Wallis.)

(source: Reuters)