Alberta's separatists could deter billions in pipeline investment

Separatist organizers in Alberta are collecting roughly 178,000 signatures to trigger a referendum on leaving Canada, and officials warn that the resulting political uncertainty could slow or deter the tens of billions in private capital needed to build a proposed pipeline to B.C.'s coast.

Some Albertans are collecting signatures to trigger a referendum on leaving Canada, and officials say that political uncertainty could affect large-scale projects. Former premier Jason Kenney warned that threats of separation can deter the capital needed for major oil and gas projects, citing Quebec's past experience. Alberta's government is seeking private financing to build a pipeline to British Columbia's coast under a memorandum with the federal government that specifies private construction and financing. Economists and business sources say some companies are adopting a wait-and-see approach. Key points: - Separatist organizers aim to collect about 178,000 signatures to trigger a referendum by the fall. - Jason Kenney said the oil and gas sector requires tens of billions in capital and that political uncertainty can deter such investment, citing Quebec's experience with separatism. - Under a memorandum with the federal government, the proposed pipeline is to be privately constructed and financed, and the Alberta government is seeking private-sector investment. - Some economists and business leaders report companies are delaying expansion decisions in Alberta until political intentions are clearer. - An Angus Reid survey found 29% of Alberta respondents would vote to leave Canada and 65% would vote to stay. Summary: Political debate over separation is being watched by investors and could affect the pace of decisions on large, multi-year projects. Organizers are collecting signatures to trigger a fall referendum; the outcome and its economic consequences are undetermined at this time.