Bond rating agency DBRS has issued a report outlining the negative effects that have come as a result of Canadian pipeline companies being unable to export to foreign markets.
The bond rating company says credit ratings will decrease for pipeline companies that don’t have access to international markets which could mean higher debt servicing costs, more difficulty signing new deals and an increase in re-contracting risks.
The problems continue to mount for Canadian pipeline companies.
Analysts now suggest there’s a dismal 25% chance of the pipeline being built.
So far, four major Canadian pipeline projects have been delayed or stopped entirely. At this point, Kinder Morgan's TransMountain pipeline extension is the only glimmer of hope for Canada's oil and gas industry.
The Federal Court of Appeals dismissed a First Nations legal challenge claiming the NEB review process violated their rights. However, aboriginal groups say they haven’t played their best cards yet. Add to this government officials like Gregor Robertson who oppose the project and it doesn’t look good.
With the stalling, opposition and outright rejection of key projects, it’s clear there are more uphill battles to endure to get pipelines approved so we can transport hydrocarbons for the benefit of Canadians across the country.