Alberta to propose new oil sands pipeline to BC coast

The Alberta government has unveiled plans to submit a proposal to the Canadian Major Projects Office for a new pipeline for transporting oil sands crude from the province to British Columbia’s northwest coast.

On October 1, the Alberta government as saying it would commit CAD14mn ($10mn) to the proposal. The government also intends to lead a technical advisory group that would include pipeline companies Enbridge, South Bow and Trans Mountain. These pipeline operators will help to develop and submit a formal application in the hope that the project, should it move forward, be deemed a project in Canada’s national interest under the federal government’s new rules for helping to expedite resource projects. However, CBC News noted that the companies would not necessarily be involved if the project moves forward. But as the Alberta government does not intend to develop a pipeline itself, the project will ultimately require private sector involvement.

“The objective of the Alberta government is to not own this pipeline,” Alberta Deputy Minister of Energy and Minerals, Larry Kaumeyer, told media include the Globe and Mail. “The objective of the Alberta government is to get it to the starting gate.”

The proposal is currently at such an early stage that there is no specific route from Alberta to northern BC proposed. According to CBC, identifying potential routes will be among the tasks that the Alberta government intends to undertake. Establishing potential costs will also be among the tasks to be carried out, according to the Alberta government’s announcement.

“This project application is about more than a pipeline; it’s about unlocking Canada’s full economic potential,” stated Alberta Premier Danielle Smith. “By doing this the right way from Day 1 with Indigenous partners and industry expertise, we will deliver a proposal that proves this project is undeniably in the national interest.”

The Alberta government said both the BC and federal governments had been made aware of its plans. However, BC Premier David Eby was critical of the proposal, describing it as vague and overly reliant on government involvement in comments cited by CBC. Going further still, Eby said it was “not a real project” compared with others in BC.

"British Columbia has literally tens of billions of dollars of real, private sector shovel-ready projects that are going to drive forward not just our economy here in BC, but the national economy at a time that the national economy is under direct threat and attack by Donald Trump," Eby said. "The problem that we have is that Premier Smith continues to advance a project that is entirely taxpayer-funded, has no private sector proponent, is not a real project, and is incredibly alarming to British Columbians, including First Nations along the coast, whose support is required for the success of the billions of dollars in real projects that I'm talking about."

Smith, for her part, has tried to portray the pipeline proposal as a project that would be beneficial to all of Canada and has therefore called for it to receive inter-provincial support.

"I think that coastal provinces have a special obligation to be generous in making sure that we're creating access to ports for all of our products," Smith said at an October 1 news conference in comments quoted by CBC. "This is a a test of whether Canada works as a country," she continued. "Because if we can't build with a collaboration of the federal government and between provinces – if it's everybody gets to get their products going to market except Alberta – that's not a country. A country is one where we support each other."