Alberta to Lead Application for New Pipeline to Northern B.C. Coast

Alberta Premier Danielle Smith announced that her province will act as the proponent for a new pipeline from Alberta to the northern B.C. coast. This move is a step towards reviving the stalled project, which aims to transport oil from the Alberta oil sands to the coast for shipment overseas. The proposal will be submitted to the Major Projects Office, and the project's fate will depend on the office's assessment and potential approvals.

Alberta Premier Danielle Smith announced that her province will act as the proponent for a new oil pipeline from Alberta to the northern British Columbia (BC) coast. This move is a step towards reviving the stalled project, which aims to transport oil from the Alberta oil sands to the coast for shipment overseas. The proposal will be submitted to the Major Projects Office, and the project's fate will depend on the office's assessment and potential approvals.

The project, which could carry up to 1 million barrels of oil per day, is intended to reduce Canada's heavy reliance on the U.S. market, particularly at a time when trade tensions with the U.S. are high. The initiative aligns with Prime Minister Mark Carney's pledge to strengthen trade relations with other countries and build infrastructure to reduce economic dependence on the U.S.

Alberta plans to seek private capital to own the pipeline, with technical advice and support from major Canadian energy operators such as Enbridge Inc., South West Energy Corp., and Trans Mountain Corp. The province will contribute C$14 million ($10 million) to early planning of the line. The project aims to accelerate construction by submitting an application to the federal government by next May.

However, the proposal faces opposition in BC, where Premier David Eby has been a vocal critic. Eby argues that the project would cost at least C$60 billion and that the money would be more efficiently spent on existing projects with private backers.

Canada's only current oil conduit to the BC coast is the Trans Mountain line, which ended in the Vancouver region. A major expansion of this line was completed after the Canadian government bought the system from Kinder Morgan Inc., with the project costing billions of dollars more than planned and taking years longer than expected due to the Covid-19 pandemic.