Enbridge Northern Gateway Pipelines

Enbridge Northern Gateway Pipelines

“The proposed Northern Gateway Pipeline, which will provide access to new markets in‑the Pacific Rim. This project is expected to grow Canada’s GDP by more than US$270 billion over 30 years. Although the US$7.9 billion, 1,177 kilometer line is hailed as bringing significant economic and social benefits, opposition remains stiff from environmental and first nations groups. Northern Gateway has received conditional approval from the federal government.” (KPMG)

Sometimes, it is important to see why certain projects have failed as well to learn from its mistakes. One project which got a lot of visibility when it started was the Enbridge Northern Gateway Pipeline. Enbridge claimed the project would generate about 3,000 construction jobs and 560 longer-term positions, as well as an additional 1,150 manufacturing and maintenance jobs. It would also produce $2.6 billion in tax revenues.

But, the project had come under heavy criticism from both aboriginal and environmental groups. Since the pipeline would pass through territories’ of the First Nation groups, they did not want their rights to be taken away. Environmental groups argued the significant high pollution levels coming from the spills. Public opinion also changed drastically as the level of opposition changed from mid-30s% in polls to high 50s%.

Hence, Canadian PM Justin Trudeau decided to cancel the project in 2016. What do we learn from this project? The most important lesson to be learnt is that whatever infrastructure project is being undertaken, the people’s interest must always be the first priority.

A picture of the proposed gateway pipeline (Image Credits: CBC)