Alberta Premier Danielle Smith, left, and Ontario Premier Doug Ford pose with a map of the pipeline proposal in Calgary on Monday.Jeff McIntosh/The Canadian Press
Alberta and Ontario are proposing a new 3,300-kilometre pipeline route to carry crude oil across the country, in a bid to reduce Canada’s reliance on foreign markets.
The proposed pipeline would travel across four provinces from Hardisty, Alta., to Sarnia, Ont., and would be able to move roughly 500,000 barrels of oil per day, Alberta Premier Danielle Smith and Ontario Premier Doug Ford said in Calgary on Monday.
The proposal was revealed days after Ms. Smith and Prime Minister Mark Carney announced a deal and new southern route for a separate proposed pipeline that would run to British Columbia’s West Coast.
Both pipeline proposals are being positioned as projects that could be fast-tracked as part of the federal government’s push to boost national infrastructure and increase global exports in response to the trade war with the United States.
But unlike the West Coast pipeline, the Alberta-Ontario proposal has no formal federal backing. Monday’s announcement also lacked details on costs, and there was no indication that Manitoba, through which the line would run, was supportive.
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It was also unclear who would build the new pipeline, potentially a major financial undertaking for a private backer at a time when domestic energy companies have shown little appetite for such risk. The West Coast proposal is being led by federally owned Trans Mountain Corp., with Pembina Pipeline Corp. taking a 10-per-cent stake.
Mr. Ford said Ontario is examining potential costs and planning to complete a feasibility study for the new proposal, called the Northern Shield Energy Corridor, by the end of the year.
He called the idea a “win, win, win” for Ontario, Alberta and all of Canada. He said his province “won’t hesitate” to financially back the project.
“I think it’s a great investment,” Mr. Ford said, adding that it would yield positive returns over the long-term.
He said he always prefers looking at private sector investment, and that this would be a “historic” and “incredible project.”
Ms. Smith and Mr. Ford swap belt buckles after the announcement.Jeff McIntosh/The Canadian Press
Mr. Ford said he has also spoken to Ottawa’s Major Projects Office, which advances nation-building projects. The federal government, however, said its priority is the West Coast pipeline proposal, which was referred to the MPO last week.
Ms. Smith said regardless of financing structures, pipelines are “an excellent investment” that generate significant revenue and offer potential equity stakes for First Nations.
She said she always hopes to have private partners come forward and added she was “grateful that Premier Ford is willing to look at all the options.”
Public opinion has also turned in favour of pipelines, she said, switching “from impossible to a national imperative.”
“The Alberta oil sands have gone from a target to a national treasure,” she added.
The proposed pipeline route follows a memorandum of understanding signed last year by Alberta, Ontario and Saskatchewan, which committed the provinces to new energy and trade infrastructure. But it excluded Manitoba – which is part of the proposed pipeline route.
Ontario said the Northern Shield pipeline would be built exclusively with Canadian steel and would lead to manufacturing and supply chain jobs in the country.
Sarnia is home to several refineries and numerous interrelated facilities. Mr. Ford also said the proposed route would provide Manitoba and the Manitoba-Crown Indigenous Corporation with the opportunity to explore the feasibility of a pipeline extension to the Port of Churchill.
A press release from the Ontario government included a supportive quote from Saskatchewan Premier Scott Moe, but not from Manitoba Premier Wab Kinew.
Amy Tuckett-McGimpsey, a spokesperson for Mr. Kinew, didn’t directly address the pipeline proposal, but instead commented on Manitoba‘s push for expanding the Port of Churchill.
“Major nation-building projects have to be built the right way. That’s why we’re continuing to work directly with northern communities, Indigenous nations, and the Manitoba Crown Indigenous Corporation as we advance discussions around Churchill’s future,” she said in a statement.
Janetta McKenzie, director of the oil and gas program at the Pembina Institute, a clean-energy think tank, said key details are missing from the Alberta to Ontario pipeline proposal, including a private-sector proponent.
“It does not seem to be a fully formed plan, and the business case really appears to be quite shaky,” she said. “Big economies around the world are really working to reduce their reliance on fossil-fuel imports.”
In a Monday research note, TD Cowen analysts said while they appreciated the political sentiment behind the proposal, “there are numerous pipeline proposals currently in development that feature more positive economic and strategic attributes.”
The Prime Minister’s Office referred questions to a spokesperson for Tim Hodgson, federal Minister of Energy and Natural Resources. Charlotte Power, Mr. Hodgson’s spokesperson, said the government looks forward to reviewing additional information about Ontario and Alberta’s proposal, including the results of the feasibility study and consultations with Indigenous partners. But she added that Ottawa’s priority is the West Coast pipeline proposal.
An east-west pipeline could cost tens of billions of dollars to build.
The expansion of the Trans Mountain pipeline, which runs roughly 1,150 kilometres from Edmonton to the West Coast, came with a $34-billion price tag when it was finished in 2024.
The long-dead Energy East pipeline would have run 4,500 kilometres from Alberta to Canada’s East Coast. Proponent TransCanada Inc. said in documents filed with the National Energy Board that it might reach $19.3-billion.
The new West Coast pipeline proposed by the Alberta government would cost between $35.2-billion and $43.7-billion, the province said in its MPO submission.