Ongoing Discussions on Alberta-B.C. Oil Pipeline
Prime Minister Mark Carney recently confirmed that discussions between the federal government and Alberta regarding a potential oil pipeline to British Columbia’s northern coast are actively underway. This announcement comes amid growing speculation that a framework agreement could be imminent.
During his comments at the G20 summit in South Africa, Carney addressed these talks publicly for the first time. He noted, “The discussion around oil pipelines, for example, and Premier Smith’s reference to a grand bargain is indeed linked to broader policy aspects in Alberta. This includes investment in carbon capture and storage technologies, which would aim to decarbonize oil production.”
In recent weeks, speculation surrounding an oil pipeline from Alberta has intensified, despite the absence of any announcements in the government’s fast-track project lists. The Alberta government indicated plans to apply for pipeline construction, with an application expected to be submitted to Ottawa in the spring.
Following the announcement of the second list of priority projects last week, Premier Danielle Smith expressed her support but emphasized that negotiations with Ottawa for the pipeline are ongoing. Carney, when questioned about a potential “grand bargain” with Alberta, referred to it as a “memorandum of understanding,” stating that discussions were progressing positively.
“Those discussions are ongoing and have proven constructive,” Carney remarked. “While there is a prospect for an agreement, it is not yet finalized. As such, it is prudent to refrain from speculation until things are more certain.”
Reports from The Globe and Mail also suggest that the federal government is contemplating lifting some restrictions on tanker traffic along B.C.’s North Coast, potentially facilitating new or expanded port facilities in Prince Rupert or Kitimat. However, B.C. Premier David Eby has expressed reservations about this proposal, emphasizing the necessity of being a cooperative partner with Canada.
Despite his hesitations, Eby reaffirmed a willingness to engage with Alberta and the federal government on expansion projects deemed necessary. Likewise, Premier Smith has indicated a readiness to prioritize maximizing the use of the existing Trans Mountain pipeline before exploring additional options.
The federal government has reiterated its commitment to garnering support for the pipeline project from the B.C. government and Indigenous communities. Carney underscored that any national project, including a pipeline, must secure the full backing of Indigenous peoples.
