Prime Minister Mark Carney and Alberta Premier Danielle Smith have reached a consensus on a new bitumen pipeline to the B.C. coast. This significant development is seen as an opportunity to boost Alberta’s energy sector, diversify Canada’s economy, and reduce reliance on the U.S. The agreement marks the end of a decade-long dispute between Alberta and Ottawa, with Alberta committing to implement a higher industrial carbon levy and support a major carbon-capture project to reduce greenhouse gas emissions in the oilpatch.
During the signing ceremony in Calgary, Carney emphasized that the agreement would make Canada stronger, more independent, and sustainable. Smith also expressed her enthusiasm, calling it a great day for Albertans. However, Liberal MP Steven Guilbeault resigned from Carney’s cabinet, citing concerns about the government’s climate commitments.
The core of the agreement is the construction of a privately funded pipeline to transport one million barrels of oil daily from Alberta to a Pacific coast export terminal, targeting Asian markets. Ottawa intends to designate this pipeline as a project of national interest, allowing for exemptions from certain federal laws. Alberta will present the pipeline plan for expedited review by July 1 after consultation with Indigenous groups and negotiations with B.C.
Alberta and Canada have committed to collaborating on an efficient approval process for the pipeline, with Alberta pledging to ensure that British Columbians benefit economically from the project. The goal is to commence construction by 2029. Carney emphasized the importance of demonstrating Canada’s ability to undertake large projects and support economic growth, particularly amid U.S. trade challenges.
Smith hailed the agreement as a new beginning, highlighting Carney’s commitment to Alberta’s prosperity. The agreement aims to reduce Canada’s reliance on the U.S. market while diversifying the economy. Despite opposition in B.C., the agreement does not grant veto power to the province, emphasizing the importance of Indigenous ownership in securing consent.
In addition to the pipeline commitment, Ottawa and Alberta will increase the industrial carbon price and focus on reducing methane emissions from the oil patch. Environmental groups have criticized the deal, calling it a setback for climate goals. Conservative Leader Pierre Poilievre expressed skepticism, while some conservatives welcomed the agreement, including Calgary MP Stephanie Kusie.