Tag Archives: pipelines
Pressure Builds on Trans Mountain’s Biggest Insurer – The Energy Mix
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Now, the heat is on the insurance companies that have given the project the financial assurance to proceed. Last week, Stand.earth reported that German insurer Talanx had stepped away from the project, after reinsurance giant Munich Re signalled its intention to withdraw earlier in the year. And Leadnow is running a petition campaign to make the pipeline’s biggest underwriter, Zurich Insurance, the next to go.
“Insurers for the pipeline are already dropping like flies,” and “if Zurich rejects Trans Mountain’s request to renew their insurance, too, it could convince other insurers that the project is simply too risky to support. It would leave Trans Mountain scrambling to find coverage—and might just be enough to stop the project in its tracks,” Leadnow writes.
Source: Pressure Builds on Trans Mountain’s Biggest Insurer – The Energy Mix
Analysts See Surplus Pipeline Capacity for Canada – The Energy Mix
Even with the global economy rebounding faster than expected,
at least from the short-term carbon emission reductions that
accompanied the pandemic lockdown, there may be no permanent relief
ahead for Canadian pipeliners. “The short-term surplus should dissipate
over the next year or so as North American and global oil demand
rebounds,” Petroleum Economist writes. “But it is likely to become an
issue again by 2023 for a different reason—a lack of growth in Western
Canadian oil production, just as an array of small-scale and big-ticket
crude pipeline projects come online.”
at least from the short-term carbon emission reductions that
accompanied the pandemic lockdown, there may be no permanent relief
ahead for Canadian pipeliners. “The short-term surplus should dissipate
over the next year or so as North American and global oil demand
rebounds,” Petroleum Economist writes. “But it is likely to become an
issue again by 2023 for a different reason—a lack of growth in Western
Canadian oil production, just as an array of small-scale and big-ticket
crude pipeline projects come online.”
The UK-based publication isn’t alone
in its analysis. Last week, Moody’s Investors Service said it had
downgraded its outlook for pipeline operators in the “midstream” energy
sector from stable to negative for the first time, over concerns about
the “aftershocks” the industry will face in the wake of the pandemic,
industry newsletter Rigzone reports.
U.S. court rejects request to revive Keystone XL pipeline permit program | CBC News
A U.S. appeals court on Thursday turned down the Trump administration’s request to revive a permit program for new oil and gas pipelines that initially originated with a challenge by environmentalists to the Keystone XL crude oil pipeline.
The U.S. Army Corps of Engineers permitting program allows pipelines to be built across streams and wetlands with minimal review if they meet certain criteria.
Environmental groups contend the program, known as Nationwide Permit 12, leaves companies unaccountable for damage done to water bodies during construction.
“This is huge,” said Jared Margolis with the Center for Biological Diversity. “Hopefully this gives us a chance to put a pause on these major oil pipelines.”
CALGARY — TC Energy Corp. is proceeding with its long-delayed Keystone XL pipeline with a US$1.1 billion “strategic investment” from the Alberta government.
The province is making a preferred equity investment in the 830,000-barrels-per-day pipeline project that would carry oil from Alberta to the U.S. Gulf Coast, which is home to the largest concentration of heavy oil refineries in the world.
Any cost overruns will be paid by TC Energy, Kenney said, adding the government’s exposure to the project is limited to the $7.5 billion in preferred equity and loan guarantees.
Oil prices have crashed in the last month as the coronavirus pandemic has caused a dramatic fall in global demand for oil. At the same time, Saudi Arabia and Russia have flooded the market with crude as they engage in a price war.
However, Kenney said, the price war in the middle of a health crisis “highlights now more than ever why we need energy independence” and an interconnected North American oil and gas market.