Those who try to prevent the development of Canadian oil sands as well as the Environmental groups' efforts to keep their insurers names confidential were accepted by regulators as a bad week for Trans Mountain Pipeline LP.
'Trans Mountain is currently meeting the conditions of confidentiality, said the Canada Energy RegulatorCanada Energy Regulator in its decision Thursday.'The names of the Trans Mountain insurers could reasonably be expected to prejudice its existing position in its dealing with potential insurers against competitive opportunities.
Mounting opposition to the Canadian oil sands led Trans Mountain to pursue to protect insurers facing pressure to drop the coverage of its pipeline that runs from Alberta to the Canadian Pacific Coast.The Zurich Insurance Group AG canceled its insurance policy last year.
Alberta's oil producers struggled with a shortage of export pipelines for years, which reduces the value of their crude.But efforts to build conduits have encountered strong resistance from environmentalists who argue that they threaten land and waterways and worsen climate change.
These concerns helped US President Joe Biden, on his first day of office in January to cancel a key permit for Keystone XL, Canada’s largest oil export pipeline project.Trans Mountain has faced stiff opposition from activists and some Asian groups over a planned expansion that would bring more oil from Alberta to indigenous markets.
The construction of that project, which was proposed more than a decade ago, started last year after the federal government stepped in to purchase the company from former owner Kinder Morgan Inc. in 2018 for C $4.5 billion -- the company was threatening to scrap the project due to the fierce pushback.
For more articles like this, please visit Bloomberg.com at bloomberg.com.
Subscribe now to stay ahead with the business news source we have ever read.