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CAPP pleased by Court of Appeal decision on Trans Mountain expansion

CAPP pleased by Court of Appeal decision on Trans Mountain expansion

The Canadian Association of Petroleum Producers (CAPP) is pleased the British Columbia Court of Appeal has reaffirmed that no one province has the authority to shut down construction of the Trans Mountain expansion pipeline (TMEP). The future of TMEP now rests with the Government of Canada to ensure construction begins immediately following the completion of consultations on June 18, 2019. 

"Today the B.C. Court of Appeal ruled in favour of Canada and its Constitution. No one province should have the ability to hold the rest of the country hostage," said Tim McMillan, CAPP president and CEO. "This judgement helps temper the uncertainty about the future of Trans Mountain and Canada's ability to export its natural resources. Now it's the federal government's turn to make sure construction begins immediately after consultations end."

The unanimous and expedient decision by the Court of Appeal to strike down proposed legislation in B.C. aimed at quashing the TMEP, was an important ruling. The court found B.C. doesn't have the authority to interfere with inter-provincial projects, and its decision upholds the constitutional principle that projects in the national interest remain federally legislated. The B.C. government must respect the federal government's jurisdiction over national projects and stop interfering with TMEP to the detriment of all of Canada, including B.C. 

The oil and natural gas industry has always been committed to the safe and responsible production of our natural resources, and its transportation on roads, in pipes, and on ships. It remains a priority for industry and the federal government, as demonstrated with Canada's world-class marine safety responses systems such as the West Coast Marine Response Corporation and the Oceans Protection Plan. 

"It is the role of the federal regulator to review all major projects and determine what is in the best interests of Canadians. At the end of the day, the National Energy Board determined Trans Mountain to be in the best interest of Canada, as a whole," McMillan said. "Environmental stewardship and the protection of Canada's waters have always been a priority. With world-class marine systems such as the West Coast Marine Response Corporation, Eastern Marine Response Corporation, and the federal Oceans Protection Plan, we can protect Canada from coast-to-coast-to-coast."

The TMEP is an investment in the future. Canada can supply the world with the energy it needs. 

Market access remains of paramount importance to Canada's energy industry. In 2017, Eastern Canada imported about 586,000 barrels per day of foreign-sourced oil. 

In the International Energy Agency's, World Energy Outlook 2018 (New Policies Scenario), total global energy demand is projected to increase 27 per cent over 2017 levels by 2040. Together, oil and natural gas will account for 53 per cent of the world's total energy demand by 2040.

Capital investment in Canada's oil and natural gas sector is forecasted to drop to an estimated $37 billion in 2019 compared to $81 billion in 2014. Canadians deserve fair market value for its natural resources, but this requires building new infrastructure and improving existing infrastructure so that Canadian energy products can compete for growing global markets.

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