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Eagle Spirit set to fly First Nations coalition puts final touches to planned pipelines to Prince Rupert Gary Park for Petroleum News
When Enbridge’s plan to build the Northern Gateway pipeline from the Alberta oil sands to a tanker port at Prince Rupert was scuppered by the Canadian government two years ago that seemed to shatter any hopes of moving crude oil across northern British Columbia.
Not so fast, is the message from First Nations-controlled Eagle Spirit Energy which is now boldly forecasting that its C$16 billion project - double the final price tag on Northern Gateway - could be carried by 35 indigenous communities covering 100 percent of the planned route to approval from Canada’s National Energy Board.
Company President Calvin Helin goes even one step better, claiming Eagle Spirit presents several advantages over the Trans Mountain expansion.
He also says the risks associated with shipping crude from Prince Rupert are very low.
Alaska remains an alternative But if those arguments don’t carry the day, Helin repeated that his company is ready to pursue its idea to establish a tanker terminal in Alaska if the Canadian government implements Bill C-48 to ban oil tankers from loading on British Columbia’s northern coast.
Speaking to a pipeline conference in Calgary, Helin said First Nations which refused to endorse Northern Gateway were not against all pipelines, encouraging Eagle Spirit to build a new environmental case for its proposal.
That resulted in an enlarged venture to establish a shipping corridor for two crude oil and two natural gas liquids pipelines plus an opportunity for a petrochemical plant to export higher value products.
The current plan involves a line costing C$12 billion to deliver 2 million barrels per day (almost four times the capacity designed for Northern Gateway) to the tanker port.
Through areas with backing for project Underpinning the scheme is a variation on Northern Gateway’s planned route of 720 miles to Kitimat by adding 180 miles from the oil sands to north of Fort St. John in British Columbia, then southwest to Prince Rupert.
Although the longer, more mountainous route doubles the project cost it would run the pipeline through First Nations territory where it has solid backing from the residents.
The Eagle Spirit crude line would carry medium to heavy crude without the use of natural gas condensate to dilute the bitumen, requiring a refinery in Alberta to convert the bitumen into crude oil, but eliminating Northern Gateway’s need for a second pipeline to import condensate.
That also deals with opposition from pipeline critics who insist the thicker diluted bitumen is more difficult to clean up than crude oil after a spill.
On the day Prime Minister Justin Trudeau announced his government was axing Northern Gateway he announced plans to formally ban tankers off Canada’s northern Pacific Coast, introducing Bill C-48.
Helin is undeterred by that threat, declaring his intention to unveil deals with crude buyers and shippers either late this month or in November, opening the way for Eagle Sprit to submit an application to the National Energy Board sometime in 2019.
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