FORT ST. JOHN, B.C. – In a new keynote Presidential campaign message yesterday, Republican nominee Donald Trump focussed on boosting jobs and making America more globally competitive by cutting business taxes, reducing regulations and increasing domestic energy production.
Of most significance to this country he reportedly would revive TransCanada’s Keystone XL pipeline project, which has been rejected by the out-going President.
Meantime, despite Barack Obama’s decision to kill the project, new barrels of Canadian crude could soon be making their way to the US Gulf Coast.
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A two point six billion dollar US deal is now in the works, involving the purchase of a 49% stake in an American pipeline system, by Calgary-based Enbridge, in tandem with US refiner Marathon Petroleum Corporation.
The Dakota Access Pipeline and the Energy Transfer Crude Oil Pipeline will provide a new route from North Dakota, to Louisiana and Texas refineries.
Currently the Enbridge mainline system delivers oil from North Dakota to refineries in Illinois and those barrels then compete for space with volumes from the Alberta oil sands.
However, analysts say this deal will add 470,000 barrels a day to the Enbridge network, with the potential to expand by another 100 thousand barrels, allowing it to free up more space on its mainline system for additional volumes of Canadian crude to make its way south.
Enbridge and TransCanada have been burned by spending billions of dollars on pipeline proposals that have been either rejected by the White House, like Keystone XL, or faced years of court delays that ultimately overturned earlier decisions, like Northern Gateway.
Finally, in the highlights package of Mr. Trump’s Detroit speech, he says if he becomes the next President he will asked Trans-Canada to re-submit its Keystone proposal, and in Saint John New Brunswick a TC company executive has opened the NEB Energy East project hearing, claiming, the $15.7 billion dollar pipeline is the safest and most environmentally responsible way, to transport crude from Alberta and Saskatchewan to Maritime refineries.