Canada to announce Enbridge pipeline decision next week: sources

Thu Nov 24, 2016 4:44pm EST
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By David Ljunggren

OTTAWA (Reuters) - The Canadian government will announce its decision on two major Enbridge Inc pipeline projects on Tuesday, two sources familiar with the matter said on Thursday.

Energy industry officials and environmental groups expect Ottawa to veto the proposed Northern Gateway line from Alberta's oil sands to the Pacific province of British Columbia and approve Enbridge's plan to replace the Canadian segments of its aging Line 3 from Alberta to Wisconsin.

The Canadian cabinet discussed the pipelines at a regular weekly meeting on Tuesday, said one source, who asked to remain anonymous because of the sensitivity of the situation.

The question of pipelines is a major political challenge for Liberal Prime Minister Justin Trudeau, who is under pressure from greens to block projects that could lead to more emissions from the oil sands.

At the same time, the energy industry wants more pipelines to ease transport bottlenecks in Alberta.

Trudeau has long opposed Northern Gateway, citing the proposed routing through a rain forest.

Line 3 currently is running at just over half capacity because of voluntary pressure restrictions.

Natural Resources Minister Jim Carr told reporters on Thursday that the Enbridge announcements would not be made on Friday "but very soon after that."   Continued...