Bill Doskoch: Media, BPS*, Film, Minutiae

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Moody’s warns of risks to Alberta economy from TMX dispute

The lede: “An influential international credit rating agency says the Trans Mountain pipeline dispute is “credit negative” for Alberta, even taking into account Ottawa’s pledge to compensate the project’s backers for money lost due to B.C.’s attempts to block the project.”

From CBC.ca (“Moody’s warns Trans Mountain failure would be major blow to Alberta economy“):

Moody’s Investors Service published a report Thursday saying that although the Canadian government’s indemnity plan eases some of the credit risks, it’s lacking in detail and might not be sufficient to shore up private sector interest.

“Overall, the dispute is credit negative for the Province of Alberta … as the project’s cancellation would represent a potentially significant loss in revenue, increase its energy transportation costs and diminish future energy infrastructure investment and oil development at a time when the province is already forecasting a prolonged period of deficits and rapidly rising debt,” the report says.

The federal government announced on May 16 that the federal government is willing to compensate Kinder Morgan, or any other backers that might take over the project, for any financial loss due to British Columbia’s attempts to obstruct the company’s $7.4-billion pipeline expansion.

The B.C. government is proposing to amend its Environmental Protection Act with new regulations mandating that companies seeking to bring more diluted bitumen through B.C. would need a permit from the province.

Kinder Morgan has threatened to abandon the project if a clear path forward isn’t reached by May 31.

 

Thu, May 24 2018 » * Big Picture Stuff, Main Page