Energy policy expert says government backing may be key to Canada's next pipeline

CALGARY — A Canadian energy policy expert has said government ownership stakes in future pipeline projects could help to accelerate approvals and attract investment, adding that Canada needs to rethink how major infrastructure gets built.Robert Johnston, Director of Energy and Natural Resources Policy at the University of Calgary, pointed to the federal government's ownership of the Trans Mountain Expansion (TMX) pipeline — through the Crown corporation Canada Development Investment Corporation (CDEV) — and questioned whether public participation could help to overcome regulatory red tape and political barriers that have stalled energy projects over the last decade."Would we actually get faster permits if the government is a co-owner and an equity owner for decisions?" Johnston asked during a panel discussion at the Global Energy Show in Calgary on Thursday.Johnston noted Ottawa is creating a $25-billion sovereign wealth fund and suggested future pipeline projects could involve government-backed investment vehicles or indigenous-led financing models."This next big pipeline probably will have a sovereign wealth fund or the Indigenous Opportunities Corporation type money in it," he said."That's how it works in many other countries around the world.".Moe backs West Coast pipeline, says Canada must reach global markets.However, research conducted by Winnipeg-based Probe Research in April and May found that 61% of Albertans surveyed did not want taxpayer money used to support a new oil pipeline.But Johnston suggested the model could appeal to international partners, particularly in Asian markets, where state-backed energy companies are common."When we look at the Asian counterparts that we're going to have, they like that model of, 'I'm a government national company. I'm in business with the government of Canada or Alberta,'" Johnston said, adding 80% of the world's oil is held by national oil companies."We're not going that far, obviously," he said."[The Asian counterparts] may not be the operator. They may not be the majority shareholder. They may again not follow the national company model, but they're aligned, and the optimistic view would be that maybe that will help get these things moving faster."His comments come as the Government of Alberta is set to submit its one million barrel per day (bpd) pipeline proposal to the BC coast to the federal Major Projects office on July 1.Currently no final route or private-sector proponents have been announced by Premier Danielle Smith, but she recently said that "there'll be one option submitted," in terms of potential routes "because if we want the Major Projects Office to act with speed, as I think everyone does, then they've just got to contemplate one proposal."

Energy policy expert says government backing may be key to Canada's next pipeline

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