Oil and gas sector cautious as deadline on Trans Mountain decision nears

Trudeau government expected to announce whether it will approve pipeline for second time on Tuesday

Pipes are seen at the Kinder Morgan Trans Mountain facility in Edmonton, Alta., Thursday, April 6, 2017. (THE CANADIAN PRESS/Jonathan Hayward)

Observers on the front lines of Western Canada’s oil and gas sector are looking forward to what’s widely expected to be approval of the Trans Mountain pipeline expansion on Tuesday while acknowledging the decision by Ottawa won’t solve all problems.

CEO Clayton Byrt of Pimee Well Servicing LP, a service rig company owned by six northern Alberta First Nations, says approval of the pipeline is a “big deal” because it will encourage investment by the oilsands producers he counts as customers.

He says more activity will support Pimee’s ability to retain its 140 employees — almost all Indigenous — and eventually grow the company to continue to offer good jobs to First Nations members.

The company counts Imperial Oil Ltd. and Cenovus Energy Inc. among its customers, both of whom have delayed building or completing steam-driven oilsands projects because of uncertainty about how they will get the oil to market.

READ MORE: Is Trans Mountain a pipeline to prosperity for Indigenous communities?

Analyst Samir Kayande, a director with RS Energy Group, says the expansion to triple capacity of the existing Trans Mountain pipeline will help with market access when it comes on stream but that likely won’t happen until 2022 and could be held up by more legal challenges.

He says the pipeline isn’t big enough to fix Western Canada’s oil transportation woes on its own, nor does it address the general downturn in energy investing in North America and the lower quality of Canada’s resources compared to premier U.S. oil and gas basins.

“Even though it’s positive and it’s important, the impact on the investment climate will probably be a little bit muted at least until you can actually start construction,” said Kayande.

“It really depends on what the next round of legal challenges looks like.”

The Canadian Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Two more COVID-19 cases reported by Langley Lodge

One resident, one staffer have tested positive for the coronavirus

Virtual Langley Walk was a family affair for Brookswood resident

Usually, Karen Ayres goes it alone, but this year, thanks to COVID-induced boredom, she had company

Car failing to yield at new stop sign causes three-car crash and flaming aftermath

A Monday afternoon multiple-car collision saw no serious injuries reported to police

Langley Township prepares for high water

The Fraser River is cresting soon and levels are relatively high

VIDEO: A Vancouver Island black bear takes weekend nap in eagle tree

Videos captured by Terry Eissfeldt shows the bear arriving Saturday night and sleeping in on Sunday

Facing changes together: Your community, your journalists

Thanks for helping the Aldergrove Star to continue its mission to provide trusted local news

George Floyd asphyxiated by sustained pressure: family autopsy

Death sparked a wave of protests across the U.S. and abroad

Suspect sought in alleged assault, hate crime on Metro Vancouver bus: transit police

The woman then allegedly punched the teenager in the head multiple times

COVID-19: B.C. commercial landlords can’t evict if they decline rent assistance

Emergency order ‘incentive’ for federal program, Carole James says

Investigators probe death of CN employee at Surrey rail yard

Transportation Safety Board is investigating an ‘occurrence that took place during switching operations’

Abbotsford International Airshow opening 50-year-old time capsule

Bronze time capsule was put together to commemorate AIA as Canada’s National Airshow

Trans Mountain starts B.C. leg of pipeline twinning project

Mostly finished in Alberta, Burnaby terminal expanding

Most Read