In preparation for the unveiling of the chosen major projects of national significance by Prime Minister Mark Carney’s administration, it has been revealed by Radio-Canada that none of the selected projects include an oil pipeline, as reported by three sources. Despite the government’s aspiration to position Canada as an “energy superpower,” there is currently no oil pipeline proposal under consideration.
While Carney has not dismissed the idea of backing a new pipeline, he stressed the importance of consensus-building with the provinces regarding the selection of a few key projects, which may or may not include pipelines. A Liberal source affirmed that the absence of a pipeline project in the initial list does not preclude the possibility of one in the future, hinting that approval for a natural gas pipeline project is also on the table.
Alberta Premier Danielle Smith has consistently advocated for an oil pipeline to be among the initial projects endorsed by Ottawa, especially one linking the oilsands to northern British Columbia. However, there has been no expressed interest from any company to finance or execute such a project, as highlighted by Radio-Canada.
Citing the current regulatory framework as a hindrance to pipeline development, Smith’s office pointed to policies such as the “emissions cap for the oil and gas sector” and the “tanker moratorium” off the northern coast of British Columbia as deterrents to attracting essential capital for the energy industry’s growth and competitiveness.
Smith is awaiting the official announcement of the project list before providing further commentary. In a letter sent to Carney post the federal election, she cautioned about the absence of a pipeline on the initial list exacerbating investment uncertainty and signaling a lack of commitment to national unity from Ottawa.
Finance Minister François-Philippe Champagne assured that the government collaborates effectively with Alberta and emphasized the need for projects of strategic national interest to rebuild the country. The government plans to disclose more information on projects deemed in the national interest shortly.
The exclusion of a pipeline project in the initial announcements may serve to appease the progressive faction of the Liberal Party, which prioritizes climate issues. Carney’s government has made significant policy shifts, including the elimination of consumer carbon pricing and the acceleration of environmental assessment processes for major projects, reflecting a renewed focus on climate concerns.
The completion of the Trans Mountain pipeline remains the most recent oil pipeline project in Canada, acquired by Trudeau’s administration in 2018. The project’s expansion costs have surged, with Ottawa’s expenditure surpassing initial estimates, drawing criticism from Conservative Leader Pierre Poilievre, who argues that the absence of a pipeline from the national projects list could impact Canada’s oil trade negatively.
Carney hinted at the upcoming announcement of infrastructure and natural resource projects of national importance as just the initial batch of projects endorsed by his government during his address to the Liberal caucus.