Alberta to announce southern route for new oil pipeline to B.C.
Alberta to announce southern route for new oil pipeline

Prime Minister Mark Carney’s government announced Thursday it was keeping a ban on oil tankers on the northern B.C. coast, just as Alberta was about to launch its proposal for a new oil pipeline. That proposal is now expected to be for a southern route, although Alberta has pressed its preference for a northern route.

Infrastructure deal and tanker ban

The continued tanker ban was unveiled in Vancouver as part of a billions-of-dollars infrastructure agreement between B.C. and Ottawa. The agreement includes federal money for an electrical transmission line in northern B.C., a copper mine, the George Massey tunnel upgrade and expansion at the Port of Vancouver’s Roberts Bank trade corridor.

Carney and Alberta Premier Danielle Smith were set to deliver an update on the pipeline proposal Thursday evening.

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Smith hints at 'exciting' announcement

In a news conference earlier in the day, Smith was asked whether keeping the tanker ban in place, and the announcement of expansion at the Port of Vancouver’s Roberts Bank trade corridor in Delta, meant Alberta was backing off a northern route for a new pipeline to the B.C. Coast. Smith would only say to stay tuned for a later-in-the-day “pretty exciting” announcement. “Canada and Alberta have come to an agreement that is mutually satisfactory,” said Smith.

Major projects office and timeline

An aspect of Carney’s economic agenda includes the use of a major projects office established in the summer of 2025 to streamline approvals, unlock capital, advance Indigenous reconciliation and to boost Canada’s global export footprint away from reliance on the U.S. Smith and Carney set July 1 as the date the application for a one-million barrel pipeline would be ready to submit to the federal government’s major projects office. The July 1 deadline was put off until July 2.

Political context and opposition

Smith has been strongly pushing for the pipeline to help diversify exports to Asian markets — and as a signal that Ottawa is responding to Alberta’s interests. Smith has not endorsed Alberta separating from Canada, but has put a question on a referendum this fall allowing voters to choose to remain a province or commence the legal process for a future binding separation vote.

B.C. Premier David Eby has not been supportive of a new oil pipeline to the northwest B.C. coast, saying liquefied natural gas and critical mineral projects would put First Nations support at risk. Coastal First Nations celebrated the decision Thursday to keep in place an oil tanker ban. “Today is a good day,” said Marilyn Slett, President of the Coastal First Nations – Great Bear Initiative and elected Chief of the Heiltsuk Nation.

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