Activists protest during the COP25 Climate Conference in Madrid, Spain, in December.
Photo: Pablo Blazquez Dominguez/Getty ImagesA Canadian mining company shelved a proposed multibillion-dollar energy project that the federal cabinet was days away from issuing a verdict on, citing political uncertainty about oil-and-gas development in the resource-rich country.
The surprise Sunday night move by Teck Resources Ltd. likely intensifies a brewing political feud between the western Canadian provinces—home base of the domestic energy sector—and Prime Minister Justin Trudeau’s federal Liberal government over environmental policy and its impact on economic growth. The decision also comes as rail blockades in support of an anti-pipeline fight by some indigenous leaders has dragged on for more than two weeks, shutting down freight-rail and passenger-rail traffic on a key central Canadian economic corridor.
Mr. Trudeau and his cabinet were scheduled this week to rule on whether Teck Resources, based in Vancouver, British Columbia, could proceed with its Frontier project in northeastern Alberta. The project would cost more than 20 billion Canadian dollars (US$15.1 billion) to build and produce up to 260,000 barrels of crude oil a day.
On Sunday, Teck Chief Executive Don Lindsay said in a letter to Canada’s Environment Minister the company was withdrawing its application for approval. He cited the heated political battle in the country between resource development and environmental policy, and how the Frontier project had emerged as a flashpoint in that debate.
Teck Chief Executive Don Lindsay.
Photo: rodrigo garrido/ReutersMr. Lindsay said it is now evident there is no constructive path forward for the project, adding that “investors and customers are increasingly looking for jurisdictions to have a framework in place that reconciles resource development and climate change, in order to produce the cleanest possible products. This does not yet exist here…”
Mr. Lindsay warned Friday in a fourth-quarter earnings call the company might have to take a C$1-billion-plus charge in the event Canada said no to the Frontier project. Back in January, Mr. Lindsay said a number of factors had to align, along with government approval, for the project to be financially viable—among them higher energy prices, newly built pipeline infrastructure and an investment partner. This led some industry observers to contend the project might never see the light of day.
Prices for Canada’s brand of heavy crude oil have plunged as supply from the U.S.’s booming shale industry has crowded out Canada’s product. Canadian producers are having trouble even getting their oil to market as pipeline companies struggle to build new arteries to transport the crude.
Following the Teck decision, the Canadian government said in a statement the country’s future competitiveness and attractiveness as an investment destination depends on a “serious plan to protect the environment.” The government also commended Teck on its project application, including the company’s work in consulting affected indigenous communities.
The Premier of Alberta, Jason Kenney, said the federal government was to blame for Teck’s withdrawal. He added he believed the anti-pipeline rail blockades in Ontario and Quebec also played a factor.
“Weeks of federal indecision on the regulatory approval process and inaction in the face of illegal blockades have created more uncertainty for investors looking at Canada,” said Mr. Kenney, one of Mr. Trudeau’s harshest critics over his commitment to more-aggressive environmental policy, which the premier said threatens the province’s economy.
Mr. Kenney added Teck’s withdrawal would reinforce his demand for a new economic deal between the federal government and western Canada, and with it greater autonomy within Canada’s federal system to develop its natural resources.
Write to Paul Vieira at paul.vieira@wsj.com
Copyright ©2019 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
"oil" - Google News
February 24, 2020 at 12:33PM
https://ift.tt/2T3rKVS
Teck Pulls Oil Project, Blames Canada’s Climate-Policy Uncertainty - The Wall Street Journal
"oil" - Google News
https://ift.tt/2PqPpxF
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "Teck Pulls Oil Project, Blames Canada’s Climate-Policy Uncertainty - The Wall Street Journal"
Post a Comment