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Canada’s Trans Mountain pipeline sees fortunes shine after KXL’s demise

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Keystone XL

By Rod Nickel and Steve Scherer

WINNIPEG/OTTAWA (Reuters) – The expansion of Canada‘s government-owned Trans Mountain pipeline assumes greater importance for the oil sector after the cancellation of rival Keystone XL reduced future options to carry crude, potential buyers say.

Trans Mountain Corp, a government corporation, is spending C$12.6 billion ($9.9 billion) to nearly triple capacity to 890,000 barrels per day (bpd), a 14% increase from current total Canadian capacity.

Prime Minister Justin Trudeau’s government bought the 68-year-old pipeline in 2018 when previous owner Kinder Morgan faced legal hurdles to expand the 1,150-kilometre (715-mile) line running from Alberta to the British Columbia coast. Ottawa has always said it would find new owners.

This week, U.S. President Joe Biden revoked the presidential permit for TC Energy’s Keystone XL pipeline (KXL), undoing efforts by former President Donald Trump to build the line that would have supplied U.S. refiners with 830,000 bpd of Canadian oil.

That decision has made the case for completing Trans Mountain’s expansion stronger.

“This pipeline is even more valuable now,” said Joe Dion, chief executive of Western Indigenous Pipeline Group, one of several First Nations groups interested in buying Trans Mountain.

“Everybody thought Trudeau wasn’t going to get things done in Canada, and he’s the one who successfully got a pipeline over Trump.”

Trans Mountain takes on more strategic importance with KXL cancelled, but it does not mean his group would pay more for it, Dion said.

Trans Mountain has completed 22% of the expansion project, called TMX, which is scheduled for service in December 2022. Suncor Energy Inc, Canadian Natural Resources Ltd and BP PLC are among the committed shippers who have secured 80% of its additional capacity long-term.

“All eyes are on TMX,” said Delbert Wapass, executive chair of Project Reconciliation, a First Nations coalition that hopes to buy 51% this year.

Sharing Trans Mountain’s profits would help improve living conditions on First Nations, he said.

Canadian companies have long struggled to secure top price for their crude as pipeline congestion forced them to sell at a discount.

However reduced fuel demand due to pandemic travel lockdowns and advancing pipeline expansions have eased the flow. Even without KXL, Canada may have surplus export pipeline capacity once TMX enters service, said Matt Taylor, director of infrastructure research at investment bank Tudor Pickering Holt, who expects modest oil production growth to 2025.

Ottawa plans to sell the pipeline once there are fewer risks to completion and consultations wrap up with First Nations, said Finance Ministry spokeswoman Katherine Cuplinskas. TMX has faced stiff opposition over spill concerns.

A second government source said it bought Trans Mountain for its strategic importance, as its Pacific Ocean connection enables shippers to move oil to Asia, as well as the United States, which buys most Canadian crude.

Now its importance is even greater, the source said.

Enbridge Inc, which runs North America’s Mainline oil network, also stands to gain from KXL’s demise. It intends to sell long-term contracts for most of the Mainline’s capacity, pending regulator approval, rather than continue to ration it on the spot market.

KXL’s cancellation frees up long-term commitments by shippers who may now sign Mainline contracts, Taylor said.

($1 = 1.2710 Canadian dollars)

 

(Reporting by Rod Nickel in Winnipeg and Steve Scherer and Julie Gordon in Ottawa; Editing by Marguerita Choy)

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RCMP end latest N.B. search regarding teenage girl who went missing in 2021

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BATHURST, N.B. – RCMP in New Brunswick say a weekend ground search for evidence related to the disappearance of a teenage girl in 2021 didn’t reveal any new information.

In an emailed statement, the RCMP said 20 people participated in the search for evidence in the case of Madison Roy-Boudreau of Bathurst.

The release said the search occurred in the Middle River area, just south of the girl’s hometown.

Police have said the 14-year-old’s disappearance is being treated as a homicide investigation.

The RCMP said the search “did not reveal any new information regarding the circumstances of her disappearance.”

There are no plans for another search until police receive a tip or a lead pointing to a new search area.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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Man Tasered after trespassing in Victoria school, forcing lockdown

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VICTORIA – A middle school in Victoria was forced into a lockdown after a man entered the building without permission, and police say they had to use a stun gun to make an arrest.

Victoria police say officers received multiple calls around noon on Monday of an unknown male entering Central Middle School, leading staff to set off emergency procedures that put the building under lockdown.

Police say its emergency response team arrived within minutes and found the suspect, who “appeared to be in a drug-induced state,” in the school’s library.

A statement from police says the suspect resisted arrest, and officers had to use a Taser to subdue the man.

He’s being held by police and has been assessed by emergency medical staff.

Police say the man was not armed and there were no continuing safety concerns for students and staff following the arrest.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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B.C. Greens’ ex- leader Weaver thinks minority deal with NDP less likely than in 2017

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VANCOUVER – Former B.C. Green leader Andrew Weaver knows what it’s like to form a minority government with the NDP, but says such a deal to create the province’s next administration is less likely this time than seven years ago.

Weaver struck a power-sharing agreement that resulted in John Horgan’s NDP minority government in 2017, but said in an interview Monday there is now more animosity between the two parties.

Neither the NDP nor the B.C. Conservatives secured a majority in Saturday’s election, raising the prospect of a minority NDP government if Leader David Eby can get the support of two Green legislators.

Manual recounts in two ridings could also play an important role in the outcome, which will not be known for about a week.

Weaver, who is no longer a member of the Greens, endorsed a Conservative candidate in his home riding.

He said Eby would be in a better position to negotiate if Furstenau, who lost her seat, stepped aside as party leader.

“I think Mr. Eby would be able to have fresh discussions with fresh new faces around the table, (after) four years of political sniping … between Sonia and the NDP in the B.C. legislature,” he said.

He said Furstenau’s loss put the two elected Greens in an awkward position because parties “need the leader in the legislature.”

Furstenau could resign as leader or one of the elected Greens could step down and let her run in a byelection in their riding, he said.

“They need to resolve that issue sooner rather than later,” he said.

The Green victories went to Rob Botterell in Saanich North and the Islands and Jeremy Valeriote in West Vancouver-Sea to Sky.

Neither Botterell nor Valeriote have held seats in the legislature before, Weaver noted.

“It’s not like in 2017 when, you know, I had been in the (legislature) for four years already,” Weaver said, adding that “the learning curve is steep.”

Sanjay Jeram, chair of undergraduate studies in political science at Simon Fraser University, said he doesn’t think it’ll be an “easygoing relationship between (the NDP and Greens) this time around.”

“I don’t know if Eby and Furstenau have the same relationship — or the potential to have the same relationship — as Horgan and Weaver did,” he said. “I think their demands will be a little more strict and it’ll be a little more of a cold alliance than it was in 2017 if they do form an alliance.”

Horgan and Weaver shook hands on a confidence-and-supply agreement before attending a rugby match, where they were spotted sitting together before the deal became public knowledge.

Eby said in his election-night speech that he had already reached out to Furstenau and suggested common “progressive values” between their parties.

Furstenau said in her concession speech that her party was poised to play a “pivotal role” in the legislature.

Botterell said in an election-night interview that he was “totally supportive of Sonia” and he would “do everything I can to support her and the path forward that she chooses to take because that’s her decision.”

The Green Party of Canada issued a news release Monday, congratulating the candidates on their victories, noting Valeriote’s win is the first time that a Green MLA has been elected outside of Vancouver Island.

“Now, like all British Columbians we await the final seat count to know which party will have the best chance to form government. Let’s hope that the Green caucus has a pivotal role,” the release said, echoing Furstenau’s turn of phrase.

The final results of the election won’t be known until at least next week.

Elections BC says manual recounts will be held on Oct. 26 to 28 in two ridings where NDP candidates led B.C. Conservatives by fewer than 100 votes after the initial count ended on Sunday.

The outcomes in Surrey City Centre and Juan de Fuca-Malahat could determine who forms government.

The election’s initial results have the NDP elected or leading in 46 ridings, and the B.C. Conservatives in 45, both short of the 47 majority mark in B.C.’s 93-seat legislature.

If the Conservatives win both of the recount ridings and win all other ridings where they lead, Rustad will win with a one-seat majority.

If the NDP holds onto at least one of the ridings where there are recounts, wins the other races it leads, and strikes a deal with the Greens, they would have enough numbers to form a minority government.

But another election could also be on the cards, since the winner will have to nominate a Speaker, reducing the government’s numbers in the legislature by one vote.

Elections BC says it will also be counting about 49,000 absentee and mail-in ballots from Oct. 26 to 28.

The NDP went into the election with 55 ridings, representing a comfortable majority in what was then an 87-seat legislature.

Jeram, with Simon Fraser University, said though the counts aren’t finalized, the Conservatives were the big winners in the election.

“They weren’t really a not much of a formal party until not that long ago, and to go from two per cent of the vote to winning 45 or more seats in the B.C. provincial election is just incredible,” he said in an interview Monday.

Jeram said people had expected Eby to call an election after he took over from John Horgan in 2022, and if he had, he doesn’t think there would have been the same result.

He said the B.C. Conservative’s popularity grew as a result of the decision of the BC Liberals to rebrand as BC United and later drop out.

“Had Eby called an election before that really shook out, and maybe especially before (Pierre) Poilievre, kind of really had the wind in his sails and started to grow, I think he could have won the majority for sure.”

He said he wasn’t surprised by the results of the election, saying polls were fairly accurate.

“Ultimately, it really was a result that we saw coming for a while, since the moment that BC United withdrew and put their support behind the conservatives, I think this was the outcome that was expected.”

— With files from Darryl Greer

This report by The Canadian Press was first published Oct. 21, 2024.

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