Jim Prentice says 'nation-building' pipelines crucial to Canada's future

Alberta's premier is urging the country to get behindseveral controversial pipeline projects linked to the province'soilsands, warning that all Canadians will "feel the pain" if theyaren't approved and built soon.

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Premier Jim Prentice told a business audience in Vancouver thatenergy development such as Alberta pipelines, B.C. liquefied naturalgas terminals and Quebec hydroelectric developments will be at theheart of Canada's economic future.

In particular, Prentice said the country's existing pipelineswill be full by the end of the decade. Without increased capacity,producers would be forced to sell Canadian oil at deep discounts, hesaid, which in turn would eat into government royalties and taxes.

"So it's realistic to look ahead and to say Canada's publicservices will feel the pain if and when we allow this to happen,"Prentice said during an event hosted by the Vancouver Board ofTrade.

"In fact, all Canadians will feel the pain as and when thisbegins to happen."

The premier pointed to the Northern Gateway, Trans Mountain,Keystone XL and Energy East pipelines, which he described as"nation-building."

Pipelines come with conditions

Prentice was sworn in as Alberta's premier in September, and heinherited the increasingly difficult task of selling new pipelineprojects to the rest of Canada.

The premiers of B.C., Ontario and Quebec have all attachedconditions for any pipelines crossing their provinces.

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B.C. Premier Christy Clark has long maintained that projects suchas Enbridge's Northern Gateway pipeline and Kinder Morgan's proposedexpansion of its Trans Mountain line would need to meet severalcriteria, including robust spill response, First Nations approvaland a "fair share" of benefits for her province.

Late last month, Premier Kathleen Wynne of Ontario and PremierPhilippe Couillard of Quebec released a list of seven conditions forTrans Canada's proposed Energy East pipeline. Those conditionsinclude emergency response measures, First Nation consultations, andconsideration of the impact on greenhouse gas emissions.

Prentice plans to meet with Wynne and Couillard separately thisweek.

"I don't want to prejudge those discussions," he said after hisspeech on Monday.

"I've had preliminary and positive discussions with both thepremier of Ontario and the premier of Quebec, and I'll wait to seewhat they have to say."

Minimizing impact on environment

Prentice met with Clark in early November. The pair did not holdany formal meetings during Prentice's visit this time, though theydid see each other at Sunday's Grey Cup game in Vancouver.

Kinder Morgan's Trans Mountain expansion project has recentlybeen overshadowed by protests from environmentalists and FirstNations, who set up an encampment at the site of drilling work onBurnaby Mountain, near Vancouver.

Prentice said Alberta, too, is concerned about responsibledevelopment that minimizes the impact on the environment and climatechange.

"I think all Canadians would expect that if we're going toexport hydrocarbons, either from the East Coast or the West Coast ofCanada, that we would have absolutely top-notch environmentalstandards," he said.

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With respect to First Nations, Prentice said it's important theirconcerns be taken into account.

"My views are well-known: we need to secure economicopportunities and partnership opportunities for First Nations
associated with these projects," said Prentice, who served asminister of Indian affairs, as the portfolio was previously known,during his time as a Conservative MP.

Along with the environmental and First Nations issues, anothercommon concern is that other jurisdictions bear the risks of thepipelines once they leave Alberta but receive comparatively littlebenefit.

Clark's demand for a "fair share" of pipeline benefits souredher relationship with former Alberta premier Alison Redford. Theylater agreed Alberta would not share any royalties with B.C., andinstead Clark would need to seek any financial compensation from theindustry.

Prentice said those benefits will come from the terminals thatserve as the end point for the proposed pipelines. Local governmentsalong the routes also collect property taxes, he noted.

"There has to be a port facility, and that port facility isnever located in Alberta," he said. "The economic opportunities
are being created elsewhere."