Regina’s Evraz steel plant is ready to complete its big order now that the Trans Mountain pipeline has received its second federal approval.
Prime Minister Justin Trudeau gave the green light to the pipeline expansion on Tuesday, nine months after the Federal Court of Appeal overturned the original federal approval. Trudeau said shovels will be in the ground this construction season.
United Steelworkers Union President Mike Day said roughly 60 per cent of Evraz’s pipe order was completed when the process was put on hold.
“As far as I know, the pipe is sitting somewhere waiting to get into the ground and it’s only a matter of time. Let’s get it in the ground already,” Day said Wednesday.
Day called the re-approval good news, meaning more work for Regina’s steelworkers. However, he wonders how many more approvals are needed to get the pipeline built in the timeline laid out by the prime minister.
According to pipeline CEO Ian Anderson, construction on the Trans Mountain expansion could start in September with the possibility of oil flowing in new segments of the pipeline between Edmonton and the West Coast by mid-2022.
“I would like to believe that it’ll get done in this time but I’m highly skeptical with the amount of protests and green activists and environmentalists out there that are more of a voice than the pro-economists are,” Day said.
Evraz is on the rebound after a tough year of taking the brunt of political decisions on both sides of the border. One month after the U.S. lifted its steel tariffs, employment at the Regina plant is at an all-time high with more than 1,050 union members according to Day, although it’s not clear whether those two are related.
“I don’t think there’s any plans to stop the hiring process right now. I think (Evraz) is not at where they want to be so I believe it’s still good news,” said Day.
Day said Evraz workers never should have had to deal with the fallout of the tariffs and delay in the pipeline construction in the first place but is glad to see signs of improvement.
“It’s a sense of relief that things are starting to look good but it was a stressful last year or so,” he said.
Goodale accentuates the positives
Federal Public Safety Minister Ralph Goodale said the resumption of the pipeline will be good for business and employment in Western Canada — and he pointed specifically to Evraz.
Goodale noted that 75 per cent of the pipe to be used in the project “will probably originate” with Evraz.
As well, Goodale said jobs will be created across Western Canada and access to world prices — which hasn’t been there in recent years — will be restored.
“Even though the pipeline itself runs from Edmonton to Burnaby, there will be that spinoff effect through the energy sector in the entire Western Canada,” Goodale said.
The minister pointed out that the Trans Mountain project is one of many the federal government has approved in Canada, including a $40-billion deal for the exportation of liquefied natural gas.
According to Goodale, the delays on the Trans Mountain project were caused by a regulatory process that was flawed before the Liberals formed government. Now, Goodale said, the proper legal framework is in place to ease the approval of future projects.
As for the Trans Mountain project, Goodale said all the i’s have been dotted and the t’s crossed to make it sound economically and environmentally.
“There’s never unanimity either on the favourable side or the unfavourable side on a project like this,” Goodale said. “What the Government of Canada needs to demonstrate is that we have behaved reasonably and responsibly in the circumstances and that there is no legal vulnerability that would cause a lawsuit to be successful.”
— With files from 980 CJME’s Lisa Schick