Alberta's Pipeline Project Expanding to the West Coast

Photo Credit: Nai500

On Oct. 1, Alberta Premier Danielle Smith announced plans to build an oil pipeline to BC’s northern coast, reigniting one of Canada’s most heated debates over energy and environment.

This proposition was made as Canada faces mounting pressure to diversify its export markets. Currently, over 97 per cent of Canada’s oil is sold to US markets in 2023, according to the Government of Canada. The proposed pipeline would carry up to 1 million barrels of oil a day from Alberta's oil sands to a tidewater port on the coast of British Columbia, allowing Alberta to export to overseas markets. This would more than double Canada’s export capacity to Asia, widening the market and lessening dependency on the US, according to The Financial Post.

Currently, Smith is in negotiations with Premier Mark Carney. “We’re about 80 per cent in agreement on most of the aspects,” she shared in an Oct. 2 interview. However, Smith states that the government will not build the pipeline itself. Instead, companies such as Enbridge, South Bow, and Trans Mountain have already offered support. So far, this has been limited to technical advice and consultation; the companies have yet to agree to build and finance the project. 

According to CTV News, BC Premier David Eby informed reporters that Smith doesn't have a real project. “Premier Smith continues to advance a project that is entirely taxpayer funded,” he said. Eby has been strongly against the pipeline, stating that there was also effective communication with First Nations. With his long history of defending BC’s environmental regulations and his full support for the tanker ban, his view on this issue is clear. 

The “tanker ban” Eby has supported refers to Canada’s Oil Tanker Moratorium Act, which prevents crude oil tankers from docking and loading on BC’s northern coast. The legislation was created to prevent the risk of oil spills that could damage the fragile marine ecosystem. However, experts warn that there is little he can do to stop the building of the pipeline, as it is a federal jurisdiction.

If this project went forward, the government's ban on oil tankers on BC’s coast would have to change, according to CTV News. Neither BC nor Alberta has the power to rewrite the legislation. For the pipeline to be built as envisioned, the Federal cabinet would have to amend the Act, or Parliament would pass a new legislation or repeal the Act. This could take months, or even years, and would face strong opposition from environmental groups and BC’s government. Given these political and legal difficulties, it's uncertain whether or not the ban could realistically be lifted.

First Nations groups have mixed feelings about this issue. While some nations and leaders are open to discussion, many believe that it is simply not worth the risk. According to Bloomberg, the Coastal First Nations, a group of Indigenous communities located near Prince Rupert, where the tankers would be loaded, cannot be swayed. “Our communities have accommodated a monumental increase in liquefied natural gas tanker traffic, and there's more on the horizon. We simply can’t entertain the idea of adding crude oil tankers on top of that,” shared Marilyn Slett, president of the coalition.

The precise cost of the project is difficult to estimate, as the route the pipeline would take through BC’s terrain has not been finalized. Alberta has pledged to allocate $14 million to early planning, including route studies, cost estimates, and creation of a professional proposal.