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Construction of Northern Gateway pipeline not likely to start this year

Enbridge’s CEO told investors he’s not focused on a timeline.

Enbridge’s CEO said the company will most likely not meet the deadline to begin construction of Enbridge’s Northern Gateway Pipeline project this year.

One condition of the project’s permit requires Enbridge to start construction by Dec. 31, 2016, unless the National Energy Board directs otherwise.

According to a Canadian Press story published by the Toronto Star, Al Monaco, Enbridge’s President and CEO, told investors on a conference call that the company’s ability to begin construction before the end of the year was “really quite remote at this point.”

Monaco said the company was currently assessing what would be needed if it were to apply for a deadline extension for the controversial project, according to the Toronto Star.

“We are really in evaluation mode,” he told investors.

Monaco also said he was not concerned with sticking to a defined timeline.

“We are not looking at our watch here on the project,” he said. “This really will take some more time to develop, and that’s what we’re focused on.”

Ivan Giesbrecht, a Spokesperson for the Northern Gateway Pipeline, said the pipeline’s construction timeline is not the critical driver.

“Northern Gateway’s priority is to build trust, engage in respectful dialogues and build meaningful partnerships with First Nations and Métis communities,” he said. “We know we have more work to do in this regard and we are making progress.”

Giesbrecht said Northern Gateway has increased the number of its Aboriginal equity partners to 28 and established new dialogues with B.C. Coastal First Nations.

First Nations chiefs in the Burns Lake area - Wet’suwet’en First Nation chief Karen Ogen, Lake Babine Nation chief Wilf Adam and Burns Lake Band chief Dan George - have said they strongly oppose this project.

The B.C. Supreme Court ruled in January 2016 that the province breached the honour of the Crown by failing to consult with First Nations on the Northern Gateway project. Enbridge must now face a provincial environmental assessment decision, which includes consultation with First Nations across the province.

In October 2015, eighteen lawsuits against Northern Gateway - launched by a collection of First Nations, environmental groups and a labour union - were presented in the federal court of appeal in Vancouver. The litigation hearing concluded Oct. 8, 2015, with judges reserving their decision on whether to sustain or quash the government's approval of the project.

Enbridge proposes the construction of a 1200-km twin pipeline that would carry diluted bitumen from Alberta’s oilsands to B.C.’s coast, passing directly through Burns Lake.

In June, 2014, the Canadian government approved the $7-billion project, but imposed 209 conditions recommended by the National Energy Board.

“Northern Gateway continues to work to meet the conditions and will provide updates on that progress in the coming weeks and months,” said Giesbrecht.

Speaking in Ottawa on June 17, 2014, Trudeau promised that if he was elected prime minister, the Northern Gateway pipeline “would not happen.”

Soon after being elected, Trudeau asked his ministers to formalize a moratorium on crude oil tanker traffic on B.C.’s north coast. However, Enbridge said it remains committed to building the proposed pipeline despite the ban.