Pipeline Resistance To Remain Strong Despite Trainwreck


BMI View: The environmental argument against expanding Canada's oil pipeline net work could weaken in face of rising frequency of rail accidents involving the transportation of crude oil and oil products. Nonetheless, the country's leading pipeline operators TransCanada and Enbridge would continue to face tough opposition particularly against proposed flagship projects Energy East and Northern Gateway, as public sentiment against the threat of oil spills from ruptured pipelines remains strong.

Proposed pipeline projects in Canada could gain traction following yet another oil-carrying rail accident. On October 19, CN Rail met with a train derailment involving nine cars transporting liquefied petroleum gas (LPG) and four cars carrying crude oil. This resulted in an explosion west of Edmonton.

It is the latest in the string of accidents that have hit Canada's rail sector. Canada's CTV News had detailed other significant derailment of trains carrying crude oil and oil products since May 2013:

  • Rail: Short-Term Solution To Move Exports
    Major Crude Export Capacity From Canada To The US (b/d)

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This article is tagged to:
Sector: Oil & Gas, Infrastructure
Geography: Canada

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