Prime Minister Mark Carney and Alberta Premier Danielle Smith are set to finalize an agreement regarding the future of Alberta’s energy sector this Thursday, as per a senior federal government source. Reports from CBC News earlier in the week indicated that the memorandum of understanding between the federal and provincial governments is expected to address the northwest B.C. oil pipeline issue that Smith has been advocating for.
The unnamed federal source mentioned that the planned signing on Thursday could potentially change. Carney, in contrast to the previous Liberal government’s stance, is willing to explore the possibility of an oil pipeline to the region if Alberta fulfills requirements such as conducting Indigenous consultations and engaging with the B.C. government.
B.C. Premier David Eby is a vocal opponent of the proposed pipeline, and challenges could arise due to the existing B.C. tanker ban bill introduced during Trudeau’s term, which restricts oil-laden ships from accessing ports along the northern coast of the province. The federal government is contemplating providing limited exemptions and may utilize its authority under C-5, the One Canadian Economy Act, to allow tankers linked to the proposed pipeline to bypass the ban.
Although there has been no recent interest from private entities in constructing a pipeline to the West Coast, Smith’s government aims to attract private investment by submitting a formal application to the federal Major Projects Office. Carney remains open to approving a new pipeline from Alberta to B.C., as per sources.
The ongoing discussions on the potential pipeline project have drawn criticism from various stakeholders, including B.C.’s premier, amidst expectations of an imminent energy agreement between Alberta and the federal government.