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Enbridge seeks 3-year delay for Northern Gateway pipe project (Canada)

Canadian energy group Enbridge has filed a request with the Canadian energy regulator National Energy Board (NEB) for a three-year extension to the sunset clause to allow its Northern Gateway crude oil pipeline project to receive legal and regulatory certainty and to continue important discussions with 31 First Nations and Métis communities. In addition, Enbridge has proposed to increase the stake of communities from 10% to 33% and to introduce a joint governance structure where project proponents (Suncor, Cenovus, MEG Energy, Nexen, Total, Husky Energy, Sinopec, Teck Resources and INPEX), First Nations and Métis owners, and Enbridge have an equal voice.

The project consists of a 1,177-km twin pipeline system between Bruderheim (Alberta) and Kitimat (British Columbia) and a marine terminal in Kitimat, enabling to transport 525,000 bbl/d of crude oil for export and to import 193,000 bbl/d of condensate. Investment is estimated at C$6.5bn (US$6bn).

The company secured approval from Canadian energy regulators in late 2013 and from the federal government in June 2014 but is still facing opposition from environmentalist groups and aboriginal communities and will have to sort out various issues before the start of the construction. In September 2014, Enbridge postponed the project to 2018; Northern Gateway is not expected before 2021.