New business for tankers in Canada ahead

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The Canadian government has approved a new[ds_preview] oil pipeline project which might lead to a lot of additional business for tankers. However, coincidently, a tanker moratorium for another region was announced, too.

The approval is part of a group of decisions, made by Canada’s Minister of Natural Resources Jim Carr, and the Minister of Transport, Marc Garneau. One of the most important projects is the »Trans Mountain Expansion Project« by Kinder Morgan, which received approval by the Government, subject to 157 binding conditions that will address potential Indigenous, socio-economic and environmental impacts, including project engineering, safety and emergency preparedness. This $6.8-billion pipeline project is supposed to twin the existing Trans Mountain pipeline system between Edmonton, Alberta, and Burnaby, British Columbia.

The project of Kinder Morgan’s is supposed to triple capacity to 890,000 barrels a day, potentially creating as well additional cargoes for tanker shipping from the port of Vancouver.

Tanker ban

On the other hand the government has directed the National Energy Board (NEB) to dismiss Enbridge’s »Northern Gateway Pipelines Project« application, because it would not be »in the public interest, given that it would result in crude oil tankers transiting through the sensitive ecosystem of the Douglas Channel, which is part of the Great Bear Rainforest«, it was said.

Instead, a moratorium on crude and persistent oil tankers along British Columbia’s north coast was announced. This area spans the Alaska–B.C. border down to the point on B.C.’s mainland adjacent to the northern tip of Vancouver Island, and includes Haida Gwaii. The Government made this decision following consultations with stakeholders including Indigenous groups and communities. It is planned to introduce legislation to implement the moratorium by the spring of 2017.

»Canadians expect the Government of Canada to help grow the economy while protecting the environment. This tanker moratorium is another example of how this can be achieved, and shows our commitment to establishing a world-leading marine safety system that meets the unique needs of Canada from coast-to-coast-to-coast«, Transport Minister Marc Garneau said. The moratorium would complement the existing voluntary Tanker Exclusion Zone, which has been in place since 1985.

Exemptions

The moratorium will apply to the shipment of crude oils as defined by the International Convention for the Prevention of Pollution from Ships. It will also apply to related oil products that are heavier and, when spilled, break up and dissipate slowly.Penalties will be commensurate with the scale of violation and could reach up to $5 million.

However due to the fact, that Northern B.C. communities rely on marine transportation for resupply – for the provision of goods, products and essential fuels (heating oils and other critical petroleum products) that ensure the ongoing well-being of their residents – vessels carrying less than 12,500 tonnes of crude oil or persistent oil products as cargo will be exempted from the moratorium.