OTTAWA — Prime Minister Mark Carney said Thursday that Alberta’s “best place” remains within Canada as his government moves closer to a new agreement with Premier Danielle Smith on pipelines and industrial carbon pricing. Speaking during a press conference unveiling the federal government’s National Electricity Strategy, Carney was repeatedly pressed on Alberta separatism, the prospect of a referendum and Ottawa’s evolving relationship with Smith’s United Conservative government.“As someone who was raised in Alberta, proud of Alberta, I view that very much the best place for Alberta is in Canada and certainly Canada that works,” Carney said. He added that the federal government’s priority is “to practice co-operative federalism” and “work with the provinces, work with the territories, work with Indigenous Canadians, and get things done on behalf of all Canadians.” The comments come one day before Carney is expected to travel to Alberta for a joint announcement with Smith related to a memorandum of understanding tied to a proposed west coast oil pipeline and the Pathways Alliance carbon capture project.Carney confirmed Thursday that the two governments are “making progress” on the agreement, though he stressed no final pipeline proposal has yet been submitted.“The intention of the MOU has been that Alberta would advance, that there will be a private sector proponent for the pipeline,” Carney said. .He said several conditions remain attached to the project, including stronger industrial carbon pricing, methane regulations and advancement of the Pathways carbon capture initiative.“No Pathways, no pipelines,” Carney said. The federal government’s relationship with Alberta has become increasingly central to national political debates in recent months, particularly amid rising separatist sentiment in the province and growing frustration over federal energy policies.Asked directly whether he was concerned about Alberta voting to separate from Canada, Carney acknowledged provinces have the right to hold referendums under Canadian law, while emphasizing that any separation question would still need to comply with the federal Clarity Act.“If it’s a referendum on separation in any province, that has to be consistent with the Clarity Act,” he said. “Ultimately, Parliament has a role in making the judgment about the question.”Carney repeatedly returned to the idea that Ottawa’s responsibility is to make Confederation function more effectively for provinces such as Alberta.“The core thing is working with the provinces, whether it’s Alberta, Nova Scotia, whichever province, or every territory, to make the country work,” he said. The comments come as Alberta and Ottawa attempt to finalize the long-delayed energy agreement first signed in principle last November.Carney and Smith are set to meet again on Friday in Calgary. Before meeting Carney in Ottawa last week, Smith warned that both industry leaders and Albertans were becoming “impatient” over delays tied to the deal.Following the meeting, Smith later said she felt “much more optimistic” about the negotiations and suggested a formal agreement could arrive soon.