New federal–provincial agreement clears path to a Pacific coast pipeline

Prime Minister Mark Carney and Alberta Premier Danielle Smith have signed a memorandum of understanding in Calgary that opens the door to building a new oil pipeline to the West Coast and reconsidering the current tanker ban off British Columbia’s shores.

Under the agreement, Ottawa is prepared to support oil exports through a deep-water port to Asian markets and, if needed, adjust the tanker restrictions. Federal support will depend on the project being deemed “of national significance” and on Indigenous participation in co-ownership and shared economic benefits.

Smith called the deal “a win for Alberta,” noting that it involves revising several federal rules, including emissions caps and clean electricity regulations. Carney said the agreement lays the foundation for an “industrial transformation” and strengthens Canada’s energy independence.

The project envisions a privately built pipeline capable of transporting at least one million barrels per day, aimed at Asian export markets. The route has not yet been chosen, but an application is expected before July 1. The memorandum also allows for “one or more” additional pipelines beyond the Trans Mountain expansion.

The agreement is tied to the large Pathways Alliance carbon-capture project: federal and provincial governments must identify new emissions-reduction initiatives and commit to cutting methane by 75% by 2035.

Ottawa is also prepared to suspend clean electricity regulations in Alberta — provided a new carbon-pricing agreement is reached.