Alberta’s Premier Danielle Smith makes a keynote speech at the LNG 2023 energy conference in Vancouver, British Columbia, Canada July 13, 2023. REUTERS/Chris Helgren/File Photo
Prime Minister Mark Carney has signed a memorandum of understanding (MOU) with Alberta Premier Danielle Smith to build a new oil pipeline to the B.C. coast.
Carney told reporters on Nov. 27 in Calgary that the agreement would create “an energy transition,” with the core of the agreement being the prioritization of building a pipeline to B.C. to ship oil to Asia. He said this would make Canada “stronger, more independent, more resilient, more sustainable.”
The terms also commit Ottawa to adjusting the West Coast tanker ban if a pipeline project is approved as a project of national interest under the Building Canada Act.
Carney added that the pipeline would be built in partnership with the indigenous peoples of Alberta and British Columbia, and would include “unprecedented opportunities for indigenous ownership” and associated economic benefits.
Carney said the agreement would also involve strengthening methane regulations and modifying Alberta’s industrial carbon tax. The agreement also pairs the pipeline project to the proposed Pathways Alliance carbon capture project.
Smith said at the press conference that it was a “great day for Albertans” and that the agreement would “unleash an incredible amount of investment and allow us to work together on important nation-building projects.” She said the agreement will also remove the emissions cap on the oil sector.
“It’s the first step, I think, of what will be a few more steps we have to take together. But I’m very pleased that the prime minister has heard our concerns and responded to them,” she said.
Earlier this year, the federal government passed the One Canadian Economy Act, also known as Bill C-5. The legislation enables the government to streamline federal approval processes to have major projects built faster, with the aim of speeding up approval times from five years to a maximum of two years.
Carney announced the first five major projects being referred to the newly created Major Projects Office (MPO) for consideration back in September. A pipeline was not included in the five projects, but the government outlined a second group of six projects that were “at an earlier stage and require further development,” which included the Pathways Plus carbon capture and storage project.
This is a developing story, updates will follow.
Matthew Horwood is a reporter based in Ottawa.