Smith expects new pipeline proposal within “weeks”
Alberta Premier Danielle Smith expects a major energy company will be bidding on a new pipeline to transport oil to the B.C. coast in the coming weeks.
Author: Quinn Patrick
Alberta Premier Danielle Smith expects a major energy company will be bidding on a new pipeline to transport oil to the B.C. coast in the coming weeks.
“I think there will be a private proponent,” Smith told Bloomberg News on Tuesday, adding that she expects a bid probably within “weeks.”
The House of Commons passed Bill C-5 last week to accelerate the building of infrastructure, including pipelines.
The legislation will permit proposals deemed in the “national interest” to receive expedited environmental impact reviews, with a target of having major projects approved within two years.
According to Smith, a line to northwest B.C. “is the most credible and the most economic of all of the pipeline proposals the private sector would consider.”
The premier said she’s been in discussions with several private firms who wish to construct a pipeline in northwest B.C., but stopped short of naming which companies.
Smith said that Prime Minister Mark Carney “is going to have his national projects list developing very soon” and that Alberta “wants to be one of the first ones on it.”
Enbridge Inc.’s Northern Gateway coastal pipeline was previously cancelled under the Trudeau government after a court halted its production based on objections from Indigenous and environmental groups.
However, there has been renewed interest in pipelines following the ongoing trade dispute with U.S. President Donald Trump’s administration, with Carney saying that he was open to the idea.
Smith said she’s “feeling optimistic” that her government can work with the Liberals to build more capacity for oil export, calling for a “grand bargain” that would see oil companies construct a large carbon capture project in Alberta to reduce emissions.
The premier hopes that financing for a new oil pipeline can come from the private sector and that governments won’t have to cover the costs like the federal government did with the Trans Mountain pipeline.
“There were problems with Trans Mountain,” said Smith. “I don’t know if it’s because of extra steps that get taken, or lack of coordination, or subcontractors who think they can overcharge, but I don’t think anybody thinks $34 billion would’ve happened if that was a private-sector project.”
Enbridge may be the company that Smith is referring to, as the Alberta government signed a letter of intent with the energy producer in January to double the province’s oil production.
“The world needs more Alberta oil and gas, and we need to make sure Alberta is meeting those needs,” said Smith at the time. “This will also allow us to play a role in supporting the United States in its energy security and affordability goals.”
Headquartered in Calgary, Enbridge transports nearly 20 per cent of the natural gas consumed in the United States and accounts for 30 per cent of North America’s crude oil production.
The company has transported almost 37 billion barrels of oil over the last decade.
Smith said Alberta intends to offer its support for a new pipeline by pledging to use it to transport oil that it receives as royalties.
“If I’m right, then the proponent will come forward, and we’ll back them, and we’ll see whether or not the federal government will accept that,” she said.