TORONTO, Dec 7 (Reuters) - The Canadian government hasgranted approval for Royal Dutch Shell Plc to expandits Jackpine oil sands project in northern Alberta, a move thatcould boost production at the site by up to 100,000 barrels aday.
Canada's environment minister said in a statement late onFriday that after a review by a federal-provincial panel, thegovernment concluded that the project was likely to causesignificant adverse environmental effects. But it said thoseeffects were justified and the project may proceed.
A Royal Dutch Shell spokesman said on Saturday the companywas reviewing the recommendations and conditions attached to theapproval.
"Proceeding with the project is subject to a finalinvestment decision by Shell and the AOSP (Athabasca Oil SandsProject) joint venture owners," spokesman David Williams said inan email.
Shell's partners in the venture include Marathon Oil Corp and Chevron Corp.
Canada's oil sands, a major source of crude oil imports forthe United States, are set for a massive expansion in comingyears and Canada's Conservative government has been a bigsupporter of their development.
Environmentalists oppose expanding production, partly on thegrounds that extracting oil from the clay-like bitumen isenergy-intensive and the resulting greenhouse gas emissions arehigh.
