Energy Executives: Canada Must Keep the Promise to Speed Project Approvals

The oil and gas industry expects the federal government will keep its budget-day promise to speed up big infrastructure projects.

Last week, the Liberal government released an initiative to speed up federal approval for key infrastructure projects by the end of the year.

The federal budget included tax credits and incentives for renewable electricity, hydrogen, critical minerals, and other areas the government feels Canada should expand in to meet its international climate goals.

However, lots of people in the Canadian oil and gas sector value the promise of a fast federal approval process for new projects.

“It’s still about permitting,” said Enbridge Inc. CEO, Greg Ebel, at an annual oil and gas conference in Toronto. “We can put all the incentives you want in place. Whether it’s a production credit or an investment tax credit, you can’t use the stuff if you can’t build (the project).”

The oil and gas sector releases the most greenhouse gases in Canada and is under pressure to reduce its carbon impact.

Industry executives say it will require a massive investment in new infrastructure, such as a $16.5 billion carbon capture and storage transportation line which the Pathways Alliance –a consortium of oilsands companies– is considering building in northern Alberta, to meet the government’s desired rate of progress.

The industry has secured an investment tax credit for carbon capture and storage and a government promise to guarantee a consistent carbon price for operators.

The Pathways Alliance plans to submit for federal approval for its carbon pipeline this fall.

“We can’t hit any targets if it’s going to take years, and then you could end up in the courts,” said executive vice-president of Cenovus, Rhona DelFrari.

Canada’s energy sector has complained for years about lengthy approval processes and regulatory uncertainties impeding major oil pipeline projects and LNG industry expansion.

MEG Energy CEO Derek Evans said the oil and gas industry aims for net-zero greenhouse gas emissions by 2050. However, speed relies on several variables, like permitting. He added that Canada’s 2030 goal of reducing emissions by 40–45% below 2005 levels is approaching.

“The question is, ‘how fast do you want us to go?’” Evans said. “But we’ve got to get started. The clock is ticking.”

Original source material for this article taken from here