Alberta proposes route through southern B.C. for new West Coast oil pipeline

Carney and ian douglas smith hold on southern route for proposed w Coast line

B.C. North Coast tanker ban will stay in place: Carney

B.C. 'will not go to court to fight a pipeline project,' premier says

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At least two environmental groups are voicing concerns about the Alberta government’s proposed route for a new oil pipeline to Canada’s West Coast that ends in southern B.C. 

Anna Barford, an oceans campaigner with the international non-profit environmental organization Stand.earth, said in a statement that she believes increased coastal tanker traffic could cause a spill that “would devastate the local marine environment for generations to come.” 

In another statement issued earlier today, before the route was announced, the Wilderness Committee said it believes a pipeline would push southern resident killer whales in the region “closer to extinction.” 

The southern resident killer whales are protected under the Species At Risk Act, which means federal prohibitions exist against anything that would harm them or habitat considered critical to their survival.

As of last year, there were 74 southern resident killer whales in the world, according to the Center for Whale Research.  

But earlier this year, Carney’s government proposed sweeping regulatory changes that would have allowed the pre-approval of development in certain "federal economic zones" and given the federal cabinet the power to exempt projects from the "jeopardy test" for species at risk.  

At the time, the federal government justified the proposed changes by arguing Canada needs to fast-track nation-building projects that strengthen the economy and help diversify exports away from the U.S.

However, following criticism from First Nations and environmental groups, the government released a statement indicating it would extend the engagement period for the proposed legislation. 

Now that the House of Commons has risen for the summer, the government could introduce legislation after Parliament resumes in September.

The organization’s president, Dianna de Sousa, said that another West Coast pipeline represents “a significant opportunity” for Alberta and Fort McMurray.

“We are especially encouraged to see Indigenous ownership and partnership at the centre of this project,” she said.

de Sousa added she is happy the project follows the established Trans Mountain pipeline route, but the chamber of commerce is disappointed to hear the federal tanker ban will remain in place.

“While we appreciate the need to balance environmental protection with economic development, working around existing legislative barriers rather than addressing them directly does not provide the level of long-term certainty investors are looking for,” she said.

Pembina Pipeline says it is going to hold a 10 per cent economic interest in the pipeline project once construction begins.

The company said it will have an opportunity to increase its stake in the project by another 10 per cent once the pipeline is operational.

In a statement, Pembina said it will have full discretion over any final investment decision for its interest, and won’t risk any of its own capital before those choices are made.

“Consistent with its long-standing approach to capital allocation, Pembina will evaluate participation in the project through a disciplined and rigorous investment framework,” the statement reads.

“The proposed multi-stakeholder structure is intended to appropriately align risk and responsibility among participants and includes protection for Pembina related to matters such as cost overruns and returns.”

Alberta's submission to the federal government’s Major Projects Office included two main routing options for a new pipeline, referred to as the "original corridor" and the "optimized

corridor." The two routes generally follow the existing Trans Mountain pipeline footprint, particularly between Wabamun, Alta., and Hope, B.C.

For the "original corridor," roughly 92 per cent of the route would be within 100 metres of existing infrastructure or land that's already been "disturbed." For the optimized option, that number drops to 82 per cent. 

The province said it chose to propose a path near the Trans Mountain pipeline to limit "new land disturbance and impacts on the environment, wildlife and nearby communities." 

The proposed West Coast pipeline would be a “nation-building project” that will also meet rising energy demands across Europe and Asia, Smith said.

The proposed pipeline would move more than one million barrels of oil per day and double oilsands production to eight million barrels per day over the next 10 to 15 years, she said.

“Developing these resources would equate to hundreds of billions of dollars in government revenue that could be used to support core social programs like health and education, bolster Canada’s national security commitments under NATO and unlock economic prosperity for Indigenous peoples,” Smith said.

“We’ve certainly come a long way from talk of phasing out Alberta’s oil and gas, haven’t we?”

The pipeline would follow a route that begins in Bruderheim, a town northeast of Edmonton, and runs towards the southern part of the West Coast.

Smith said that's a similar route to the existing Trans Mountain pipeline, which she said comes with advantages, such as existing relationships with Indigenous partners.

“Obviously it will take time and there is much work ahead of all of us, but I say to all people across Alberta and across Canada, we will get the job done,” she said.

“The window of opportunity is open now. Recent global events have made it clear that Canada’s safe and reliable sources of oil, gas and critical minerals are vital to the world’s economy.”

PM Carney says 'best route for a new pipeline is one that already exists'

At an announcement with Alberta Premier Danielle Smith, Prime Minister Mark Carney said the best route for a new oil pipeline is south through the Trans Mountain corridor to the Pacific coast, "the gateway to the world’s fastest growing markets."

Carney spoke first at the news conference in Calgary. He said the Trans Mountain Corporation will plan and construct a new West Coast oil pipeline out of Alberta, working closely with the Pembina Pipeline Corporation. 

He said his government will refer Alberta’s West Coast Pipeline Project proposal to the Major Projects Office.

Carney said his government, the Alberta government and the Oil Sands Alliance have also agreed on the terms to launch the Pathways project — a massive carbon capture utilization and storage project. 

He said the agreement will result in 16 million tonnes of emissions reductions per year.

Carney said the announcement will “unlock Alberta’s energy for the world,” claiming it will create more than $200 billion in new direct investments in Canada and at least 175,000 new jobs across the country.  

The private proponent — or private company — required by the Alberta-Canada memorandum of agreement to permit a pipeline to the West Coast is the Pembina Pipeline Corporation.

In a news release published before Smith and Carney spoke, the company said it's entered into a non-binding agreement between the governments of Canada and Alberta, along with the Trans Mountain Corporation to "participate in a proposed nation-building energy infrastructure initiative," with Pembina saying it will contribute expertise.

It's unclear what the financial terms of the company's participation is at this point, and it said in a news release it has a target of September to sign definitive agreements.

Pembina's existing pipelines include the Syncrude pipeline.

The company has said it "shall have no at-risk development capital" at this stage, which likely means that, for the moment, it is not risking a substantial amount of money — if any.

She also wrote on her X account in a post at 6 p.m. MT that she will be introducing industry partners for the project. She also said she will explain how the province will “clear the way for rapid expansion of Alberta’s energy industry.”

In a week of big trades in the National Hockey League, perhaps it makes sense to analyze today's agreement between the federal government and British Columbia through the lens of what each group secured.

To British Columbia: Billions of dollars for new natural resources projects, a tunnel replacement in Metro Vancouver, guarantees on environmental protections, $630 million for child care, and perhaps most importantly to the provincial government, maintaining the North Coast tanker ban.

To Alberta: The understanding that the B.C. Government will not put up significant opposition if a pipeline is proposed  that would run through to the province’s South Coast — confirmed by Eby during the news conference with Carney announcing the “Cooperative Prosperity Agreement”

To the federal government: A bit of interprovincial peace.

There’s a lot more to it than that, of course. The reaction could change based on the specific route or funding for a South Coast pipeline, or how the money for B.C. Infrastructure projects is distributed.

But some looked at the deal announced by Carney and Eby as efficient political calculus, a summary not disputed by sources familiar with the negotiations.

Read more.

Some business leaders in B.C. Say they are pleased with the province’s deal with Ottawa to provide billions of dollars in support for infrastructure and resource projects.

“Businesses have been saying we want to get projects built, we want to get the economy moving. And this agreement does provide some of that foundation to do that," said Bridgitte Anderson, CEO of the Greater Vancouver Board of Trade.

Anderson said the federal investments in the Port of Vancouver expansion, critical mineral projects and key clean energy projects solidify B.C.’s role in growing the national economy. 

Richard Masson, an energy consultant and former CEO for the Alberta Petroleum Marketing Commission, said he believes the plans to expand the Port of Vancouver, coupled with Carney’s decision to keep the North Coast tanker ban, point to a southern pipeline route as the best option. 

“Going south follows a corridor where there’s already a great deal of knowledge and a lot of infrastructure to work from," he said.

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