The federal government under Prime Minister Mark Carney is set to unveil another round of major infrastructure projects, but a new oil pipeline will be notably absent from the list. The Alberta government has confirmed that while sensitive negotiations with Ottawa are ongoing, an agreement to fast-track a bitumen export pipeline has not yet been reached.
Ongoing Negotiations Between Alberta and Ottawa
Alberta Premier Danielle Smith had previously expressed hope that a deal with the federal government would be finalized by the time of the CFL Grey Cup game this Sunday. However, her office issued a statement on Wednesday confirming that negotiations are still underway. The goal is to secure a memorandum of understanding that would address regulatory hurdles and pave the way for a new pipeline to Asian markets.
The statement from Premier Smith's office elaborated, saying they are working on an agreement that includes "the removal, carve out or overhaul of several damaging laws chasing away private investment in our energy sector, and an agreement to work towards ultimate approval of a bitumen pipeline to Asian markets."
New Projects on the Fast-Track List
While the pipeline is not included, Prime Minister Carney is scheduled to officially announce the latest batch of nation-building projects in Terrace, B.C., on Thursday afternoon. Sources familiar with the list have confirmed several major initiatives are set for fast-tracking.
The new list is expected to include:
- Ksi Lisims LNG: A major liquefied natural gas project on British Columbia's northwest coast, which would be Canada's second-largest proposed LNG project.
- Sisson Mine project: A tungsten and molybdenum mine in New Brunswick.
- Crawford nickel project: Located in northeastern Ontario.
- Nouveau Monde Graphite Inc.'s mine and battery-materials plant: A project based in Quebec.
- An Iqaluit hydro project.
- A major electricity transmission line in northern B.C.
This follows the first five projects announced two months ago, which included a Montreal port expansion, a small modular nuclear plant in Ontario, and phase two of the LNG Canada project.
Broader Implications for Canada's Energy Sector
The exclusion of a pipeline from this latest list underscores the ongoing tensions between the federal government's economic priorities and the aspirations of Alberta's energy sector. The continued negotiations highlight the complex balance between advancing nation-building infrastructure and addressing environmental and regulatory concerns. The outcome of these talks will be closely watched by industry stakeholders and investors, as it signals the federal government's commitment to the traditional energy industry amidst a push for a greener economy.
The announcement in Terrace, B.C., will mark another step in the Carney government's strategy to accelerate critical infrastructure projects across the country, even as one of its most contentious issues remains unresolved.
