|
TransCanada steps up campaign Pending Canadian government ruling, CEO Hal Kvisle rejects Enbridge pitch, says competition has ‘already happened’ Gary Park Petroleum News Calgary Correspondent
With the Canadian government pondering its next move, TransCanada fired the latest salvo April 7 in its battle with Enbridge over who will play the key role in building the Canadian portion of the Alaska Highway natural gas pipeline.
In a conference call billed as “Setting the Record Straight,” TransCanada Chief Executive Officer Hal Kvisle brushed off Enbridge’s case for a free market competition, saying “competition has already happened” during 200-plus days of hearings in the 1970s.
Emerging from those National Energy Board hearings, Foothills Pipe Lines, now a wholly owned unit of TransCanada, was awarded certificates for the Canadian segment in the Yukon, British Columbia and Alberta.
He apologized for not being more available to the news media, saying TransCanada has been immersed in “very complicated” discussions with six governments, three regulators and the North Slope’s three producers as it tries to “pull together the elements” of one of the most significant pipeline projects in North American history.
He said talks have taken place over three years with the producers, ExxonMobil, BP and ConocoPhillips, saying: “It’s frustrating that we are not able to present a deal.”
Kvisle said the “central hang-up” is for the producers to be certain that a flood of liquefied natural gas into North America or a move away from gas by power generators will not drive gas prices back to $2 per thousand cubic feet at the same time an Alaska pipeline comes on stream. Enbridge campaign has been ongoing Over recent months TransCanada has been silent in the face of a growing all-out campaign by Enbridge to win industry, public and Canadian government backing for a free market hearing under the NEB and the Canadian Environmental Assessment Agency.
Enbridge said in a full-page add in several major Canadian newspapers a month ago that sticking with the 1978 Northern Pipeline Act, the basis of giving TransCanada sole rights over the Canadian portion, would “undermine the free market landscape in Canada” and afford TransCanada an “unfair competitive advantage.”
TransCanada retaliated April 8 with its own full-page ads describing the Northern Pipeline Act, which Kvisle said is a law with no expiry date, as “valid, current and flexible” that would maximize jobs and other benefits for Canadians and expedite “competitive energy prices for Canadians.”
He emphatically ruled out any partnership with Enbridge, saying that his cross-town rival is “not a critical player” in the same way that the state of Alaska and the North Slope producers are.
Asked if he would support Enbridge doing a deal with the producers, he gave a one word answer: “Why?”
But Kvisle did agree that the producers have considerable knowledge and expertise with pipelines in Alaska that TransCanada would be willing to see used in the construction of a pipeline “the way they want or with other parties.” The next crucial move will come from the Canadian government, which will decide whether to uphold the Northern Pipeline Act or support Enbridge’s argument for a fresh start.
Various government officials have indicated a decision would be announced in January, then by the end of March.
The stalling has given rise to speculation that a cabinet pipeline committee is taking a closer look at the Enbridge case.
In the latest prediction earlier in April, a spokesman for Natural Resources Minister John Efford said the minister hopes the committee will make a “decision sooner rather than later.”
Alaska Gov. Frank Murkowski again emphasized on April 4 that his government is anxious to see Canada make a prompt decision so that participants know the rules of engagement.
| 