Enbridge may be understating the true costs of the Northern Gateway oil pipeline, according to an APTN report based on WikiLeaks emails from Texas-based global intelligence firm Stratfor. The firm’s vice-president of analysis suggested that the true cost of the Enbridge Northern Gateway pipeline could "easily" go over $15 billion, and that China would have to cover much of the cost.
The story, which was first reported in Aboriginal Peoples' Television Network by Jorge Barrera, highlights information from emails relating to Canadian oil sands in The Global Intelligence Files, derived from Stratfor -- known as the "shadow CIA".
Below is the email which mentions the Enbridge Northern Gateway pipeline cost (emphasis added):
Re: G3/B3/GV - CHINA/CANADA/ENERGY - China Invests in Canadian Oil-Export Project
Email-ID 1105205 Date 2011-01-21 15:38:57 From mark.schroeder@stratfor.com To analysts@stratfor.com List-Name analysts@stratfor.com it is Prince Rupert that is the gateway they're talking about. i'll send here next a PR release I dug up, on plans for Prince Rupert port and infrastructure.
On 1/21/11 8:25 AM, Peter Zeihan wrote:
while technically possible, going over the Canadian Rockies would be a technical challenge to say the least
im guessing that the price tag on this would easily go above $15b (about triple what the current estimate is)
there's are very good reasons why all the crude goes south on flat
land to the midwest
so not impossible, but china would have to pony up for all of that itself (its done stranger things for less, so who knows)
Vancouver as an oil supertanker port -- now THAT would do some
interesting things to Canada's view of China
A response from Enbridge is pending, but spokesperson Todd Nogier told APTN that it stands by its original $5.5 billion quote.
“It is a figure we use that we expect is going to be the cost to construct the pipeline,” said Nogier.
“Our funding partners, participants and Enbridge have financial arrangements. Whatever cost escalations that might occur, that is not something we are dealing with at the moment.”
Read the full story at APTN.ca.
