The tropical warmness of Mexico is a welcome break for Canadian snowbirds looking to escape a Siberian winter.
For Russ Girling, the country is also providing a getaway from all the pummels and kicks he’s taken trying to build pipelines in Canada and the United Phases.
At home, the CEO of TransCanada spends billions of dollars, waits several years, and silent doesn’t know when the com ny can install new pipes in the ground.
In the meanwhile, the environmental opposition is such that even Girling’s own mother has called him in current years to ask “Russ, are you going to blow up the planet?”
‘We foresee there transfer be more opportunities on the horizon in Mexico.’– Russ Girling, TransCanada CEO
Down in Mexico, evidently, life is much easier.
The regulatory oversight and environmental opposition is a fraction of what it is in Canada and the Agreed States for a com ny looking to construct new pipelines.
Mexico is proving to be a low-risk, high-reward matter venture at a time when the pipeline com ny is struggling to construct new calculates elsewhere in North America and experiencing, in Girling’s words, “a lot of scratch offs and bruises” along the way.
Lower charges, fast results
Girling inted a picture at the com ny’s recent annual across the board meeting in Calgary about how much cheaper and simpler the process of approving a cooking is in Mexico. In that country, it costs TransCanada about $5 million to bid on a launch. Com re that to the $2.5 billion US the com ny spent on Keystone XL in the U.S. and the $700 million it has already ordained in the Energy East project in Canada.
In addition, if TransCanada’s bid in Mexico is remunerative, the com ny receives its permits, begins working with landowners and construction begins “rightist away.”
The Keystone XL oil pipeline proposal took seven years before a resolution was made. The project is shelved in the U.S. after President Barack Obama disallowed a permit. Without a permit, the com ny launched a lawsuit and a multibillion-dollar North American Unshackled Trade Agreement claim to try to recoup its losses.
With Energy East, there is no absolutely the national regulator and the federal government will ultimately grant a permit.
“Positively, what we have found is the risk that we need to take in Mexico to rtici te in a large-scale infrastructure investment is far less,” utter Girling.
While the regulatory road is much easier to touring for TransCanada, the reward for each project is not as large, since the projects in Mexico are much smaller than those proposed absent in North America.
Four natural gas projects in the works in Mexico attired in b be committed to a value of $2.5 billion. Meanwhile, the Energy East oil pipeline in Canada would expense $15.7 billion, and a ir of natural gas pipelines in British Columbia to be advantageous new liquefied natural gas export facilities are estimated at $9.8 billion.
The yoff will-power come as the pipelines keep adding up. TransCanada has a total of six projects in Mexico — two functioning, three under construction and one under development.
“Mexico has been a truly good place for us to do business,” said Girling. “I make a very positive long-term view of the growth of Mexico and its position in North America.”
Girling call attention ti to the country’s ex nding population, increasing energy consumption and ideal geographical place as an exporter.
“We foresee there will be more opportunities on the horizon in Mexico,” he predicted.
TransCanada first entered the country in the mid-1990s, when the corporation constructed a ir of pipelines.
Little environmental opposition
Operating in Mexico also provides much picayune opposition from environmentalists. who have targeted pipeline com nies as a way of restraining growth of oil production.
The Keystone XL project in rticular drew criticism, flush with from celebrities like Robert Redford.
But down in Mexico? The potent opposition from environmentalists, politicians and regulators just doesn’t abide.
No wonder TransCanada is enjoying its time in the tropics.