The Alberta government is preparing to apply for a new oil pipeline to the British Columbia coast, according to a source. The Globe and Mail first reported the development on Wednesday, citing three sources familiar with the matter.
A source familiar with the plans, who was not authorized to speak publicly, later confirmed that the province plans to apply to the federal government for fast-track consideration of the project.
The Alberta government has scheduled a press conference on Wednesday afternoon.
The Globe and Mail said pipeline operators Enbridge, South Bow and Trans Mountain would support the application. The Reuters source said the three companies would provide technical and advisory support for the government’s proposal but have not committed to building the pipeline. The government’s plan is to draft an application and an early cost estimate to submit to the federal government’s new Major Projects Office, the Globe and Mail said, adding that a final route for the pipeline has not yet been decided. Enbridge, South Bow and Trans Mountain will work with the government and the Alberta Machine Intelligence Institute to draft models of a potential route, the report said, citing a person familiar with the plans.
Alberta Premier Danielle Smith said in June the oil-producing province was working to present to the federal government a proposing entity and route for a potential new, 1-million-barrel-per-day crude pipeline from Alberta to Prince Rupert in British Columbia.
Canada – which currently sends 90% of its oil exports to the United States – is trying to diversify oil exports, but has struggled to find private companies willing to build a pipeline.
In recent years, major Canadian oil pipelines have faced years of regulatory delay and legal challenges, leading to cancellations for some projects and spiraling costs for others, like the Trans Mountain expansion.
The Canadian government under Prime Minister Mark Carney aims to accelerate the construction of natural resource projects, and in August created a new federal office designed to fast-track the review and approval of projects such as mines and pipelines.
But pipeline companies have repeatedly said significant provincial and federal legislative change— including the removal of a federal cap on emissions from the oil and gas sector, as well as the removal of a ban on oil tankers off B.C.’s northern coast — is required before a private sector entity would consider proposing a new pipeline.
Reuters reported in September, based on three sources with knowledge of the talks, that Canada’s government was in discussions with energy companies and Alberta about eliminating the federal emissions cap if the industry and province reduce their carbon footprint in other ways.
(Reporting by Amanda Stephenson in Calgary and Devika Nair in Bengaluru; Editing by Marguerita Choy and Cynthia Osterman)