Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Enbridge Targeting Public Over Regulators to Build Gateway Line

May 21 (Bloomberg) -- Enbridge Inc., Canada’s largest oil pipeline operator, is spending more time seeking public support for new conduits than regulatory approval as opponents of fossil fuel development try to block new routes to market, Chief Executive Officer Al Monaco said.

“It’s not so much about getting the regulatory authority, it’s all about ensuring that the public is comfortable,” Monaco said at the Bloomberg Canada Economic Summit in Toronto today. “That’s the price of entry and that’s where we have to focus our energy more.”

Enbridge has proposed the C$6 billion ($5.82 billion) Northern Gateway pipeline to carry oil-sands crude from Alberta to Canada’s Pacific Coast. Environmental and some aboriginal groups oppose the 1,177-kilometer (731 mile) project because of the risk of spills.

New conduits are needed from Canada to correct a “huge disconnect” in North American oil prices as supply exceeds pipeline capacity, Monaco said. Constraints on existing lines have caused Canadian heavy oil prices to trade at a discount to West Texas Intermediate, the U.S benchmark.

Western Canada Select oil was $21 a barrel less than WTI today, according to data compiled by Bloomberg.

The price gap amounts to “C$25 billion a year of value destruction” for the Canadian economy, Frank McKenna, deputy chairman of Toronto-Dominion Bank, said during the panel discussion with Monaco.

Enbridge has about C$30 billion of projects in design and construction to carry crude to new markets, Monaco said. The company owns and operates Canada’s largest oil pipeline network, spanning 24,738 kilometers, according to its website.

Canada’s National Energy Board regulator has until the end of the year to make a recommendation on Gateway. Monaco said he’s “heartened” a decision will come this year.

To contact the reporters on this story: Rebecca Penty in Toronto at rpenty@bloomberg.net; Jeremy van Loon in Toronto at jvanloon@bloomberg.net

To contact the editors responsible for this story: Susan Warren at susanwarren@bloomberg.net; David Scanlan at dscanlan@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.