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Enbridge rebukes B.C.'s compensation demands

Stockhouse Editorial
0 Comments| November 14, 2012

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According to the Globe and Mail, Enbridge Inc. (TSX: T.ENB, Stock Forum) snubbed two of B.C’s demands, including that the province deserves higher compensation for increased environmental risk and that an elected New Democratic Party in the province would kill the pipeline.

In an interview with the Globe and Mail, Enbridge’s CEO, Al Monaco, said B.C. would have the most to gain from the project when you consider labour income, tax revenue and capital investment.

“It's not a question of trading off risk and profit or risk and reward,” said Monaco in reference to royalties.

As for the threat of an elected NDP killing the project, Monaco said "I don't think so ... we have to outline the economic rationale and sustainability rationale and let the project unfold through the regulatory process."

If approved, the Northern Gateway pipeline would run from Edmonton, Alberta to Kitimat on British Columbia’s northern coastline, potentially carrying 525,000 barrels of petroleum per day.

Alberta is keen for the pipeline to proceed as it targets new markets in Asia.


Enbridge is a Calgary-based North American leader in delivering energy and one of the Global 100 Most Sustainable Corporations.

On Wednesday, Enbridge’s stock fell 0.23% and was trading at $38.81 a share. The company has a market cap of $31 billion, based on 799.5 million shares outstanding. The 52-week high and low was $42.23 and $34.52 respectively.



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