Alberta to restrict oil, gas to British Columbia in Canada pipeline row

Alberta to restrict oil, gas to British Columbia in Canada pipeline row

Companies in Alberta must now obtain permits to export oil and gas to British Columbia.

Kinder Morgan is currenly working on a pipeline between Alberta and British Columbia. (AFP pic)
EDMONTON:
Alberta lawmakers voted on Monday to give the Canadian province discretionary powers to limit shipments of oil and gas to neighbouring British Columbia in a row over a pipeline expansion.

The measure passed first reading in the legislature. Once enacted, it would require companies to obtain Alberta permits in order to export oil and gas to British Columbia, which already pays the highest fuel prices on the continent.

The two westernmost provinces have been at loggerheads for weeks over the proposed tripling of the Trans Mountain pipeline’s capacity to move 890,000 barrels of oil per day from landlocked Alberta’s oil sands to the Pacific coast, for shipping to new overseas markets.

On Sunday, Prime Minister Justin Trudeau interrupted a trip to the UK, France, and Peru to try to mediate the spat that has already seen Alberta boycotting British Columbian wine.

Trudeau’s Liberal government approved in 2016 the C$7.4 billion (RM22.9 billion) expansion project, which he said is “in the national interest.”

Kinder Morgan recently suspended most work on the pipeline amid the intense political uncertainty, saying it would drop the project if the parties fail to resolve their differences by May 31.

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