Today is the day that the government will make their decision on the Trans Mountain Expansion, and it should not be a surprise to say that they are almost certainly going to approve it, having spent $4.5 billion on the existing pipeline to “de-risk” the project, and far more in political capital at the cost of some of their BC, Indigenous, and environmental base while trying to insist that this is necessary for the transition to a cleaner economy. Of course, if they could communicate their way out of a wet paper bag, it might help them to make that case, but they seem incapable of it. The real question is going to be what kinds of changes to the route will be made in order to accommodate Indigenous groups, or other conditions to be mandated as part of it.
There will be much talk about the “pipeline crunch” that the TMX will hope to address, which has to do with added oilsands production and not enough ways to get it to market, given ongoing delays on the American side of both Enbridge Line 3 and Keystone XL – projects which have been approved in Canada, and the Line 3 construction has been ongoing on the Canadian side. But as much as TMX will help, we also need to remember that the projected growth capacity is limited, which is another reason why Energy East doesn’t make economic sense. The concern that the sector needs all kinds of new pipelines isn’t actually borne out in the data (as Andrew Leach has pointed out repeatedly, including here).
On a related note, the government has rejected most of the Senate amendments to Bill C-48, on the tanker ban, but did agree to the five-year legislative review period, but as much as industry groups are demanding that this bill and Bill C-69 be killed, it’s not going to happen.