Archives for January 18, 2020

Oil and gas industry applauds dismissal of B.C. pipeline case

The Canadian Association of Petroleum Producers says it is pleased, but not surprised, by the Supreme Court ruling that shut down British Columbia’s attempt to regulate what can flow through an expanded Trans Mountain pipeline.

Tim McMillan, CEO and president of Canada’s largest oil and gas industry association, says the project has undergone historic levels of consultation, reviews and court challenges.

He says it has been found to be in the best interests of Canadians.

The B.C. government wanted to require provincial permits before heavy oil could be shipped to the province through pipelines from Alberta.

The Supreme Court decision upholds a B.C. Court of Appeal ruling that said such permits would violate Ottawa’s authority under the Constitution to approve and regulate pipelines that cross provincial boundaries.

The high court’s ruling Thursday removes one of the remaining obstacles for the project that aims to twin an existing pipeline that runs between the Edmonton area and Burnaby, B.C.

Natural Resources Minister Seamus O’Regan welcomed the ruling, saying it is a core responsibility of the federal government to help get resources to market and support good, middle-class jobs.

Alberta Premier Jason Kenney said he looks forward to construction continuing on the project and Saskatchewan Premier Scott Moe says the pipeline is in the interests of all Canadians.

B.C. Premier John Horgan expressed the province’s disappointment, saying his government will do what it can to protect the B.C. coast and environment.

Hybrid electric ferries arrive in BC this weekend

BC Ferries’ two new Island Class hybrid electric vessels are expected to arrive this weekend.

The ferries are being transported by the Sun Rise heavy carrier. It has been slightly delayed because of poor weather.

“The ships will spend several days at Ogden Point while preparations are made to unload and deliver them to Point Hope Maritime,” says Tessa Humphries, spokesperson for BC Ferries.

For this to happen, the Sun Rise, a semi-submersible transport ship, will partially submerge, she said.

The new ferries “will be floated off and manoeuvred by tugs to Point Hope Maritime,” Humphries said.

“Point Hope is recommissioning the ships, which includes various work before BC Ferries takes ownership of the vessels.”

Built by Damen Shipyards Group in Romania, the Sun Rise left that country in late November, passing through the Panama Canal on its way here.

The Island Class ferries will be deployed on the Powell River-Texada Island and Port McNeill-Alert Bay-Sointula routes by mid year.

Ottawa to give $25K to families of each Canadian killed in crash

Prime Minister Justin Trudeau says Ottawa will provide $25,000 to the families of each of the 57 Canadian citizens and 29 permanent residents who died when Iran shot down a Ukrainian passenger jet last week.

Trudeau says the money is intended to cover the cost of funeral arrangements or travel, and it’s on top of an earlier commitment to waive fees and speed up processing times for visas for those affected by the crash.

“This is a unique and unprecedented situation, because of the international sanctions placed on Iran and the difficulties that that imposes on these families,” Trudeau told a news conference in Ottawa Friday.

“I want to be clear: we expect Iran to compensate these families,” he said, but noted that could take time.

“I have met them. They can’t wait weeks. They need support now.”

Meanwhile, Foreign Affairs Minister Francois-Philippe Champagne was in Oman to meet with his Iranian counterpart, Javad Zarif, to talk about the shooting down of the Ukraine International Airlines flight PS752, which killed 176 people last week.

That meeting comes after Canada and four other countries with citizens aboard the downed airliner came up with a list of demands for Iran, which includes pressing that country to co-operate with the investigation.

The countries are all asking that Iran punish those responsible and compensate the families of victims.

It has been just over a week since one — and possibly a second — Iranian surface-to-air missile took down the passenger jet minutes after takeoff from Tehran’s international airport.

The Canadian Press has independently confirmed at least 90 victims with ties to Canada, many of them students and professors returning after spending the December break visiting relatives in Iran.

In a rare sermon during Friday prayers, Iran’s supreme leader called the downing of the civilian airliner a bitter accident that saddened Iran and made its enemies happy.

Ayatollah Ali Khamenei said Iran’s international rivals have seized on the crash to question the country and its armed forces.

He also attacked the United States for its killing of a top Iranian general, which was a factor in putting Iranian air defences on high alert, and called President Donald Trump a clown.

Finally some positive news for lumber, OSB industries

Financial analysts say Canadian production cutbacks and a consumer-driven recovery in housing starts in the United States could mean better times for lumber and panel products this year.

In a research report, RBC analyst Paul Quinn estimates B.C. lumber producers have permanently closed mills accounting for 18 per cent of the province’s capacity, a move that is expected to help to bring North American supply in line with demand and support price increases.

He adds the closure of three oriented strandboard mills and part of another has removed about 9.5 per cent of North American OSB capacity.

RBC is forecasting that U.S. housing starts will increase by about 2.5 per cent this year to 1.3 million units, driven by strength in single-family housing, and there will be further gains in lumber demand from the adoption of “mass timber” methods which allow construction of taller wooden buildings.

Meanwhile, CIBC analysts are also bullish on the lumber sector in North America, given stronger housing starts this year and their estimate of a five per cent decline in supply from last year.

In a report, they say they expect a robust spring selling season, with lumber prices and producer share prices likely to rise.

“2019 was one of the worst years in memory for lumber and OSB companies, with most reporting significant declines in profitability and seeing their equity value deteriorate,” noted RBC’s Quinn.

“However, a number of positive developments have us feeling increasingly bullish.”