Saskatchewan Premier Scott Moe is standing firm in following Alberta’s lead with the plan to introduce legislation allowing the province to block off oil product shipments to British Columbia.
This comes after several delays to Kinder Morgan’s Trans Mountain pipeline expansion.
“It’s my hope this never comes to this. This isn’t a conversation that anyone wants to have. This is a situation that we are faced in,” Moe said.
“With the regulations we have in place that are under the federal government’s responsibility are being held up, are being held up by one province that is asking questions of the courts with respect to a project that is clearly in the federal government’s purview.”
Moe says Saskatchewan is dependent on the ability to export its products, whether that is oil, grain, or manufactured goods. B.C. holding up the federally-approved $7.4 billion project is not in Saskatchewan’s or the federal interest, according to Moe.
READ MORE: Saskatchewan premier says legislation is coming to block energy exports to B.C.
Alberta’s proposed legislation would give the energy minister the ability to dictate where and when petroleum products could be sent through the use of export permits.
“We’ll legislate that to be there in the case that we need to act on this,” Moe said.
The premier said Saskatchewan has a legal opinion on the upcoming legislation. He added that Saskatchewan’s legislation would not take effect until Alberta puts its own in place.
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Opposition Leader Ryan Meili urges caution in this action, pointing to potential consequences for businesses like Regina’s Co-op Refinery.
“If we stopped shipping that would have an immediate impact on our economy and workers right here. So any legislation really needs to be viewed through the lens of is this appropriate, will it achieve what it is intended to achieve, and what are the unintended consequences and how can that be avoided,” Meili said.
READ MORE: New law would allow Alberta to restrict flow of oil and gas
Kinder Morgan has given the federal government until May 31 to provide concrete assurance the project can be completed.
Prime Minister Justin Trudeau and Alberta Premier Rachel Notley have talked about buying a stake in the pipeline to ensure it is built. Moe said that is not something Saskatchewan is looking at.
Moe says oil backlogs cost Saskatchewan $100 million in oil revenue annually, so Saskatchewan is losing out due to the Trans Mountain delays.
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