There is a lot of speculation in Ottawa that a new deal is imminent for a pipeline to move Alberta oil to B.C.’s North Coast.
The Alberta and federal governments are said to be close to signing a Memorandum of Understanding (MOU) to move forward with the project.
It would include new or expanded port facilities in Prince Rupert or Kitimat, which would require at least a partial repeal of the North Coast tanker ban.
The federal government said it would seek support for the project from the B.C. government and the First Nations, who currently oppose the ban.
“This government was elected to deliver nation-building projects, strengthen our economy, reinforce Canadian autonomy, advance Indigenous prosperity, while contributing to clean growth,” B.C. Minister of Energy and Natural Resources Tim Hodgson said.
“We are working with all the provinces, including Alberta, to achieve these shared objectives. The federal government has been engaged in constructive talks with the Government of Alberta, and we will have more to say in a few weeks.”
In October, the Alberta government said it plans to apply to build a new oil pipeline to northwestern British Columbia.
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Alberta Premier Danielle Smith said her government would submit the application to the federal government next spring.
Alberta will act as the proponent, Smith explained, with the support and technical advice from three crude pipeline companies: Enbridge, South Bow and Trans Mountain.
On Thursday, Smith said they are seeing a change in the public dialogue about the need for oil and natural gas.
“We’re doing the technicals on a new pipeline to the northwest B.C. coast,” she said.
“We have the potential to also do something similar to Churchill in the Port of Prince Rupert to Churchill economic corridor. We’ve got proposals coming to us about how we might be able to export to Thunder Bay and get them out through the channel system there, through the St. Lawrence Seaway, as well as oil by rail going all the way to Sydney, Nova Scotia. So I’m very encouraged by all of these conversations.”
Smith said the world is going to need more oil and she is hopeful that the Memorandum of Understanding is coming from Ottawa soon.
“We know that we’ve got a little bit more work to do on the technical side to be able to submit our pipeline proposal for consideration at the major projects office,” she added.
“We’ve targeted the spring on that. And if we do get to an agreement with the federal government, we’ll certainly let you know. But I remain very hopeful as our negotiations continue.”
However, B.C. Energy and Climate Solutions Minister Adrian Dix said that an MOU doesn’t change anything.
“There’s no proponent, no route, doesn’t make any economic sense, and you have to overturn the tanker ban,” he said.
Hedy Fry, MP for Vancouver Centre, said on Thursday that she does not think the provincial government would agree to a pipeline to the North Coast.
“I think the criteria for accepting a project like that, I think that the prime minister was clear. I mean, right here, the province has to agree on it, Indigenous people have to agree upon it first. So that’s, we’ll see what they say,” she said.
MP Andrew Scheer, the Conservative House leader, said in question period on Thursday that one way to increase trade with other countries would be with a pipeline to the B.C. coast.
“But of course, if the shipping ban stays in place, no one will be able to actually export what comes through the pipe,” he said.
“The Liberals made it illegal to ship Canadian energy off Canada’s west coast. Does that law also ban U.S. tankers from travelling through the same area?”
Hodgson responded that Canada has a tremendous opportunity to become a leading energy superpower, but it must be done correctly.
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