Alberta and Canada Near Agreement on Potential Oil Pipeline Proposal

Alberta Premier Danielle Smith says her province and Canada’s federal government are “about 80% aligned” on the framework for a potential new oil export pipeline, signaling progress on one of the most politically sensitive energy issues in the country. Speaking to Reuters, Smith said Alberta has begun early planning for the project and will rely on advice from major pipeline companies, including Enbridge, South Bow, and Trans Mountain. However, she clarified that the province has no plans to construct the pipeline itself, emphasizing that private-sector partners would take the lead if Ottawa approves the proposal. Smith indicated that the next move lies with Prime Minister Mark Carney’s government, which has yet to comment. Enbridge CEO Greg Ebel warned that Canada’s ban on oil tankers along British Columbia’s northwest coast would need to be lifted before any company commits, saying, “No company would build a pipeline to nowhere.” B.C. Premier David Eby reaffirmed his province’s support for the tanker ban. The federal government has reportedly discussed linking the pipeline’s approval to Alberta’s progress on the Pathways carbon capture project and potential adjustments to the national oil and gas emissions cap. If built, the pipeline could carry up to one million barrels per day, expanding Canada’s export capacity as the Trans Mountain pipeline nears full utilization by 2028.