Alberta and the federal government revealed the details Thursday of a much-anticipated agreement that includes a commitment to develop “one or more” new pipelines to increase oil exports to Asian markets — but British Columbia was largely left out of talks.
Prime Minister Mark Carney and Alberta Premier Danielle Smith formally announced the memorandum of understanding (MOU) at an event in Calgary.
Alberta is to submit an application to the federal Major Projects Office (MPO) to fast-track a pipeline by next July.
Smith said in October her government would submit a formal application to the federal Major Projects Office (MPO) for a pipeline project, putting down $14 million from her government to support the application. The advisory group includes energy companies South Bow, Enbridge and Trans Mountain.
The MOU stipulates the pipeline would be privately financed and constructed. It also confirms Ottawa would make changes to the oil tanker ban on B.C.’s north coast if a pipeline is ultimately approved.
The agreement says the new pipeline would be in addition to expanding the capacity of the existing Trans Mountain pipeline by up to an additional 400,000 barrels per day.
News broke last week that an agreement between Alberta and Ottawa was in the works, and appeared to catch B.C. leaders off guard. Premier David Eby said talks involving B.C. should have B.C. at the table.
Eby said he spoke to Prime Minister Mark Carney by phone Monday morning to voice his concerns, emphasizing that any new project must have the support and consent of First Nations.
He has consistently opposed a new pipeline, arguing there is no private proponent and expressing doubt that any company would come forward to finance a project of such scale.
Eby has been staunchly opposed to a new pipeline project, arguing there’s no private proponent and he’s doubtful any would come forward to finance the massive project. He has also maintained that repealing the oil tanker ban on B.C.’s north coast would threaten the region’s economy and jeopardize First Nations support for other valuable major projects in B.C.
Earlier this month, Eby and Coastal First Nations signed a joint declaration calling on the federal government to uphold the ban.
The MOU states the federal government and Alberta will engage in discussions with B.C. on the potential pipeline and ensure B.C. share in the economic benefits of the project. It also says Alberta and the federal government agree to “engage meaningfully” with Indigenous Peoples in both Alberta and British Columbia on the project.
The MOU also reiterates Ottawa will work with B.C. on other major projects of national interest. Four major B.C. projects are on the federal government’s list for potential fast-tracking, including LNG Canada Phase 2, Ksi Lisims LNG, the Red Chris Mine Expansion, and the North Coast Transmission Line.
“I want to thank Prime Minister Carney for stepping up to the plate and recognizing we need to move Canadian oil to international markets,” said B.C. Conservative Leader John Rustad Thursday morning.
B.C. Energy Minister Adrian Dix insisted in Question Period Thursday the pipeline project remains “imaginary” and said B.C. is focused on “real” projects that are ready go forward, like the North Coast Transmission Line.
Eby is scheduled to speak to media Thursday afternoon.
The list of other commitments in the MOU includes the development of large transmission interties between Alberta and British Columbia and Saskatchewan to help power major projects like LNG, critical minerals and data centres.
More to come.
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