Smith says a public natural gas pipeline is unlikely

EDMONTON — Premier Danielle Smith clarified a leaked report on Saturday, saying that Alberta has a natural gas supply issue, but it is unlikely that the government will need to spend billions of dollars to create a Crown corporation and build a public pipeline. "Short answer: No, we don't do that in our province," said Smith during her Your Province. Your Premier. radio show. .The Western Standard reported on Friday about a leaked cabinet report stating that key investments, such as Alberta’s expansion into the AI data centre industry, could be at risk if available natural gas cannot be substantially increased. Smith and the document said a key issue is a lack of competition in the natural gas transmission industry, which TC Energy largely controls. "What we're hearing is that there's literally dozens of different types of companies that are having a difficult time getting enough gas," Smith said. "So we're looking at how we might be able to do that with some of our other providers." The document recommended that the UCP take a trio of actions, including spending up to $162.6 million between 2026 and 2030 to create a pair of Crown corporations: one for regulation and oversight, and the other to potentially build a public pipeline when the private sector will not. Smith said other provinces have used public funds to build transmission and power infrastructure, but she does not see the UCP needing to do it."I think there's enough private sector interest that we would not have to go to what they do in other provinces," Smith said. "We would very unlikely have to create a crown corporation to do it." .The report also outlined a risk of rising utility costs associated with the moves, as better gas access could lead to higher prices and elevate costs for industries and consumers. Alberta NDP leader Naheed Nenshi took issue with this on Friday, and said it would be a direct effect of the UCP's AI data centre strategy, or lack thereof. "The report today says that everyone, all Alberta households and all Alberta businesses, will see huge price increases to their natural gas," said Nenshi. "That means your electricity bill will go up. That means your home heating bill will go up." "But it's not just that; it is a tax on everything. It means everything you buy, including the already outrageous price of groceries, will go up when natural gas goes up, and there is no help coming from the UCP.".Smith said the cost of natural gas would actually decrease if supply is increased. "What we're looking at is how do we get more competition, more choice, so that we can get more gas to more people, so that it can be used, and it's going to bring prices down," Smith said. "So, if you think about it the other is if you have constrained gas and there's more demand than there is supply, that's what causes prices to go up. So what you need to do is you need to increase supply so prices stay low."

Smith says a public natural gas pipeline is unlikely

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