Canada open to conversation on KXL, but not until tariff threat is dropped, Wilkinson says

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Canada Wilkenson, Minister of Natural Resources, says Canada is open to a conversation about the revival of the Keystone XL pipeline project, but not before the threat of the US tariff on Canadian goods.

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He said that US President Donald Trump's call to immediately revive the cross -border pipeline project earlier this week was “difficult to understand” while his government threatened at a time of 10 percent tariffs for Canadian energy.

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“This is very inconsistent,” said Thursday. “At the end of the day, there may be a conversation about the KXL, but it cannot even be even the Americans decide that they will reduce the tools in terms of tariffs.”

Wilkenson noted that the pipeline is 830,000 barrels per day due to organizational issues in the United States, and not from anything raised on the Canadian side of the border.

After more than a decade of the efforts made by the billionaires on the pipeline that was partially built, the former supporter TC Energy Corp. (Then Transcanada Corp) officially for the proposal in 2021 after President Joe Biden was canceled. Since then, the company has operated the work of oil pipelines in South Bow Corp.

Trump said that the company behind the abandoned proposal, or another pipeline company, should return to the United States and “get it – now!” In a post on social media Monday.

“We are definitely open to talking about KXL, but he will need a supporter, he does not have now, and he will need organizational certainty in the United States,” Wilkinson said.

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Ottawa believes that it answered Trump's border security concerns, as the measures that appear to have been approved after delaying the implementation of the customs tariff for Canadian goods until March 4.

Wilkinson said a decision on moving forward with a tariff against Canada is still likely to go to the wire.

“President Trump is somewhat flourishing on the wrong guidance and in creating uncertainty,” he said. “At the end of the day, we will only discover whether we are successful in persuading the president a day.”

Wilkenson has disrupted US officials for weeks on a partnership to develop half -dirt of energy and critical minerals aimed at enhancing investment on both sides of the border while achieving Trump's declared goals of maintaining low energy prices for Americans and enhancing national security.

Wilkinson said the previously announced plan in Enbridge Inc. It is the Enbridge Inc. Which has been announced in advance to increase the ability of the main font system that carries Canadian crude to the American Middle West.

In a statement on Friday, Anbridge said that up to several hundreds of thousands of barrels per day of the additional capacity can be brought in 2027 or 2028. The additional exit can come in a number of roads, including Debottlenecking and add horse capacity to increase the flows, adding that additional details will be announced next week.

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In a call last Friday with his American counterpart, US Energy Minister Chris Wright, Wilkenson said he also discussed investment in uranium production in Canada in Saskatchean and expanding transfer facilities in Ontario.

He said: “In fact, North America can have a full nuclear fuel cycle that will eliminate dependence on the United States currently on Russia for enriched uranium.”

The list of potential projects in Ottawa includes proposals to increase Canadian mining, germanium and muleum exports to displace the export ban in China to the United States

“This will create job opportunities and an opportunity in Canada, and this conversation will transfer from a loss to a victory,” Wilkinson said.

Wilkenson said that even if the customs tariffs are not achieved, Canada is now in a position it will be important to look at reducing the amount of trade it is doing with the United States, such as searching for agents in countries such as Japan, South Korea, Australia and Europe.

For example, the Canada trade in natural gas is preparing to explode, as Wilkenson said, referring to the LNG export projects currently being built in British Columbia, including the early stages of Lng Canada, Woodfibre Lng and Cedar Lng.

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He said: “We are about to make decisions made about Long Canada two.” “If all these four projects continue, this size of gas is about half of what we currently send to the United States. This is an important step forward in terms of commercial diversification.”

Canada can also follow a modest batch of crude oil flows on the Trans Mountain pipeline, but Wilkenson warned of the danger of “exaggeration in the reaction” to Trump's threats when it comes to projects that aim to expand crude oil production.

Despite the comments earlier this month, it calls for a new oil pipeline to the west to the east, asking about the need for another new pipeline project under the current circumstances.

“I am not sure what a new pipeline will do for you,” he said. “(The matter) begins with a work case already. I don't think you are likely to see supporters lining up to create a pipeline unless they are sure they can fill it.”

He said that the new pipeline to Tidewater may not be necessary while Canadian crude is still in high demand south of the border thanks to the formation of refineries in the Middle West and the improved Gulf coast to treat heavy barrels in Canada. Moreover, the International Energy Agency predicted that the global demand for oil will reach its peak in the next five years.

In the event of recent calls to take the return of organizational obstacles to major projects and the abolition of federal legislation such as the Antiquities Assessment Law, Wilkinson defended his government approaches in major infrastructure projects such as pipelines.

He said: “At the end of the day, an attempt to run harsh in some way on the original concerns and environmental concerns will only lose you the ability to obtain a social license for any of these projects.”

mpotkins@postmedia.com

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