Ontario relieved Ottawa fighting for Line 5, but fears pipeline could become politically toxic

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CALGARY — Faced with the pending shutdown of the Line 5 oil conduit that serves Ontario’s refineries, the energy minister of Canada’s most populous province said he is relieved to hear the federal government deems the pipeline “non-negotiable.”

“I haven’t frankly been aware of the federal government’s involvement in Line 5 between them and Michigan recently, if that’s occurred,” said Greg Rickford, Ontario’s Minister of Energy, Northern Development and Mines, in an interview with the Financial Post.

Rickford said he was reassured to hear federal Natural Resources Minister Seamus O’Regan tell a House of Commons committee on Thursday the federal government would fight attempts by Michigan Governor Gretchen Whitmer to shut down Enbridge Inc.’s Line 5, which delivers just over half of Ontario and two-thirds of Quebec’s oil supply.

“If, in fact, the federal government is giving this full attention now, we’re obviously very relieved to hear that. I’ll request a briefing from Minister O’Regan to tell me just what exactly his government has been up to,” Rickford said Friday, noting Ontario has previously fought proposals to shut the line down in 2019 and 2020.

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Ottawa said it has raised the issue with officials in the U.S. through Joseph Comartin, Consular General in Detroit, Ambassador Kirsten Hillman and, this week, with U.S. Energy Secretary Jennifer Granholm.

Calgary-based Enbridge’s Line 5 pipeline runs from Alberta through Michigan under the Straits of Mackinac, which divides Lake Huron and Lake Michigan, to supply refineries in southern Ontario. Multiple refineries in Ohio, Michigan and elsewhere depend on the line for oil supply.

In Nov. 2020, Michigan revoked an easement from 1953 that allows Enbridge to use the Straits of Mackinac, and demanded the company stop flowing oil through the line by May 12. The pipeline giant has vowed to fight the order in court, but those court hearing dates are scheduled to begin May 18.

“We will not be shutting down Line 5 in May unless ordered by a court or (the Pipeline and Hazardous Materials Safety Administration), which we view as unlikely,” said Enbridge spokesperson Jesse Semko in an emailed statement.

“Enbridge remains confident that Line 5 continues to operate safely and that there is no credible basis for terminating its right to operate across the Straits under the 1953 easement,” Semko said, adding the company intends to “vigorously defend” itself in court.

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The federal government has signalled it will defend the pipeline’s operation using the provisions of the 1977 Transit Pipeline Treaty, which researchers at the CD Howe Institute say “could prove crucial” to Canada’s efforts to keep Line 5 in operation.

O’Regan called the operation of Line 5 “non-negotiable” in a House of Commons committee meeting on Thursday and said the federal government is “fighting on a diplomatic front.”

This drew questions from Conservative MP Mark Strahl, who noted the federal government had failed to prevent U.S. President Joe Biden from cancelling TC Energy Corp.’s Alberta-to-Nebraska Keystone XL pipeline, and pressed O’Regan on how the plan for Line 5 was different.

“It sounds an awful lot like the plan to advocate for Line 5 is a carbon copy of the plan to advocate for Keystone XL,” Strahl said. “Why are you expecting a different result?”

“These are very different,” O’Regan said as he defended the federal Liberal efforts on Keystone XL, which Biden cancelled on his first day in the White House.

Alberta’s government views the difference in the fight for the two pipelines as a reflection of Ottawa’s willingness to fight for the interests of Ontario and Quebec.

“Both projects are incredibly important to Alberta and Canada. The only difference is losing Keystone XL disproportionately hurts Western Canada, which Justin Trudeau doesn’t care about, whereas losing Line 5 risks votes amongst Ontarians and Quebecers, who Justin Trudeau needs,” said Jerrica Goodwin, press secretary to Alberta Premier Jason Kenney.

“Everyone knows this is the difference in Ottawa’s reaction,” Goodwin said.

But Ontario, which is directly dependent on Line 5 for oil, is concerned about the comparison between the existing Line 5 and the now-shelved Keystone XL project.

“I don’t believe any political party or jurisdiction should tie politically charged pipelines like Keystone XL with Line 5,” Rickford said.

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