B.C., Alberta reach "framework" agreement on Gateway project

|By:, SA News Editor

The premiers of British Columbia and Alberta say they can work through some of the differences standing in the way of the proposed Enbridge (ENB; EEP) Northern Gateway pipeline, but they’ve effectively agreed to drop the most contentious issue: B.C.’s demand for a share of the revenue associated with the project.

B.C. Premier Christy Clark has long insisted her support for Alberta's plans depends on the project meeting various conditions including a "fair share" of the economic benefit, but B.C. is now agreeing to take demands for financial compensation directly to the oil and gas industry.

Alberta's Alison Redford suggests the understanding brings the provinces closer to an ultimate agreement on the pipeline.

In addition to the Enbridge project, Kinder Morgan's (KMP; KMI) proposed Trans Mountain project would expand an existing pipeline from Alberta to the Vancouver area.