The mayors of the municipalities that would anchor either end of a proposed Alberta-to-Ontario oil pipeline say the project could deliver economic benefits to their communities, though both acknowledge major hurdles remain. On Monday, Alberta Premier Danielle Smith and Ontario Premier Doug Ford announced plans for a 500,000-barrel-per-day oil pipeline dubbed Northern Shield. The proposed 3,300-kilometre route would run from Hardisty, Alta. — a town of about 600 people roughly 200 kilometres southeast of Edmonton — to Sarnia, Ont., on the southern shore of Lake Huron.
Hardisty Mayor Highlights Job and Investment Opportunities
Hardisty Mayor Brett Baumgartner said the energy industry is central to his town’s economy, estimating it employs about four out of five of the town’s residents. “We see this as a potential opportunity for jobs, investment, and economic growth,” he told Postmedia via email. “Short term, a major pipeline project would bring construction workers, contractors, engineers, and support crews to the region. That will increase business for local hotels, restaurants, fuel stations, suppliers, and other service providers.” He said potential longer-term benefits could include jobs related to maintenance, inspection, and operational support for the pipeline should it open.
Early Stages and Regulatory Hurdles
Baumgartner acknowledged the proposal remains in its early stages and faces regulatory, commercial, engineering and consultation hurdles, but said he believes it can be built. “I am confident that if all levels of government can work together, this project will become reality.” The proposed route would also cross Saskatchewan and Manitoba. Saskatchewan has voiced support, while Manitoba has yet to endorse the project which could also include a spur line north to the port of Churchill.
Funding and Demand Questions
Others have pointed to how the project is in its preliminary stages, with Ontario undertaking a feasibility study to explore further details. Some have also questioned who will fund the pipeline after Smith and Ford declined on Monday to rule out using public funds for construction. Noah Jarvis with the Canadian Taxpayers Federation said governments would be better off reducing red tape and taxes to ensure the project would be funded without taxpayer dollars. “Ford should stand up to Ottawa and fight Carney’s carbon taxes and anti-pipeline laws so natural resource projects get built with private money instead of putting taxpayers on the hook.” Others questioned whether there would be enough demand to justify another export pipeline given the 2024 twinning of the Trans Mountain pipeline and the memorandum of understanding between the Alberta and federal governments for a new West Coast pipeline.
