By Andrew Roman for the Financial Post
For the original commentary, see the publisher’s website here.
In Brief by Probe Media
The recent Memorandum of Understanding (MOU) between Alberta Premier Danielle Smith and Prime Minister Mark Carney is being criticized as a façade that does little to facilitate pipeline development, argues veteran litigator Andrew Roman. While it was celebrated as a step towards a new bitumen pipeline to the West Coast, the MOU is riddled with provisions that effectively kill investment opportunities.
Pipeline killers include: tanker ban uncertainty (only allowing for exports “if necessary” and contingent on adjustments to the existing West Coast tanker ban), Indigenous co-ownership (up to 50%), B.C. government engagement (which could lead to delays or deadlock), carbon pricing commitment (further complicating the landscape for potential investors), dependency and veto risks (tying construction to approval of a massive carbon capture project).
Rather than a clear path to pipeline construction, the MOU is an obstacle course with the potential for blame to fall on Alberta’s leadership if the project fails to materialize.
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