The Globe and Mail wonders if Canada is on the verge of
moving from a pipeline shortage
to a pipeline surplus in its Friday edition. The Globe's guest columnist Thomas Gunton writes that if you look at the numbers, the answer
is yes and the implications
could be costly.
The capacity of the projects
approved by the federal government
(Kinder Morgan's Trans Mountain, Enbridge's
Line 3 and TransCanada's Keystone XL) and under
review (TransCanada's Energy East) is 2.9
million barrels per day (bpd).
These projects would expand Canadian
export pipeline capacity
to 7.1 million bpd. The latest forecast by
the Canadian Association of
Petroleum Producers (CAPP) for
Western Canadian oil supply is
4.9 million bpd for 2025 and 5.5
million for 2030.
Mr. Gunton says building all four projects would result in 2.4 million to
2.7 million bpd of excess capacity
in 2025. The capital cost of empty
pipeline space would be about
$25-billion. If current rail capacity
is included, the surplus
capacity would be even higher.
Mr. Gunton says the pipeline
industry appears to be creating unneeded capacity. Mr. Gunton says no new
pipeline projects other than
completion of Enbridge's Line
3 are required to 2030.
© 2024 Canjex Publishing Ltd. All rights reserved.