VANCOUVER _ The premiers of British Columbia and Alberta have reached an agreement on moving energy to new markets via an oil pipeline that will move through B.C.
News of the deal comes as
Enbridge Inc.'s (
TSX: T.ENB,
Stock Forum) proposed Northern Gateway pipeline is undergoing a joint environment assessment review. It would deliver 525,000 barrels of oil from Alberta to a tanker terminal in Kitimat, on the north coast of B.C.
Kinder Morgan (
NYSE: KMI,
Stock Forum) has also proposed its own $4.1 billion Trans Mountain project that would expand an existing pipeline from Alberta to Vancouver.
B.C. Premier Christy Clark has long insisted her support for the Enbridge pipeline depends on the project meeting five conditions, including a ``fair share'' of the economic benefits of the project.
According to a statement released Tuesday:
Alberta has agreed to accept B.C.’s five conditions for pipeline approval.
B.C. has agreed to sign the Alberta Energy Strategy.
Alberta agrees that B.C. has a right to negotiate with industry on appropriate economic benefits.
Both governments agree it is not for the governments of Alberta and B.C. to negotiate these benefits.
Both provinces reaffirmed that Alberta’s royalties are not on the table for negotiation.
Agreement on B.C.'s five conditions is a necessary first step before any proposals can be considered for approval,'' said B.C. Premier Christy Clark.
The framework will also see the Government of B.C. endose Alberta Premier Alison Redford's Canadian Energy Strategy.
The governments of B.C. and Alberta agree that B.C.'s conditions are intended to ensure both the responsible production of energy as well as its safe transport to new markets, giving projects the social license to proceed.
Kinder Morgan shares were off 34% to $35.11 on Tuesday. Enbridge rose 0.73% to $45.80.