The Canada Energy Regulator shielded the names of the insurance companies working with the Trans Mountain pipeline, at an attempt to protect the project from future rollbacks, as it faces major opposition from environmental groups.
Firstly, the Canada Energy Regulator (CER) ruled that the pipeline does not have to make public the name of its insurers. However, the rule just applies to the current pipeline, and not the $10,2 billion expansion, currently underway.
Secondly, the decision from CER came as revealing the names of the insurers could fatally undermine the whole project’s health, as opposition groups and environmental organizations are pushing insurance companies no not make business with Trans Mountain.
Thirdly, as it is right now, the project is already enduring fierce opposition, ballooning costs and the potential of declining future oil demand. Consequently, the agency said back on April that: “Sharing the names of Trans Mountain’s insurers could reasonably be expected to make it harder for it to get insurance at a reasonable price and prejudice its competitive position.”
Moreover, in 2020 insurers working with Trans Mountain included Zurich Insurance Co. Ltd., Energy Insurance Mutual Ltd. and Liberty Mutual Insurance Co. However, Zurich decided not to renew the coverage. The company did not elaborate on its decision.
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Environmental groups in Canada to keep pushing against Trans Mountain
According to Canada news media, citing a Trans Mountain spokesperson, the company is “pleased with the regulator’s decision;” and that the company has “all the required; and also, necessary insurance in place for our existing operations and the expansion project.”
Moreover, having insurers is essential for the project; to stay in compliance with Canadian regulations, Trans Mountain must maintain $1 billion in financial resources; including “insurance policies; also, escrow agreements; letters of credit; lines of credit; surety bonds; and, also, cash or cash equivalents,” the energy regulator said.
In addition, previously, the company has acknowledged that making its insurers public, comes with a loss of coverage; also, with a drop in number of insurers willing to offer it and significantly higher costs.
Finally, one of the most fierceful contenders of Trans Mountain, Stand.earth, vowed to continue its campaign to dissuade insurers from doing business with Trans Mountain; even with insurer names shielded.
