Smith confirms Alberta–Ottawa energy agreement deadlines will not be met

CALGARY — The first deadlines outlined in the memorandum of understanding (MOU) on energy between Prime Minister Mark Carney and Alberta Premier Danielle Smith are now expected not to be met.Speaking Monday at the CERAWeek by S&P Global Energy Conference in Houston, Smith said negotiations have fallen behind schedule, which highlights the challenges in the deal, which included a proposal for a new BC coast export pipeline.“We don’t want to delay very long,” Smith said.“We know that we need to have market certainty, but that’s the time frame that we’re working towards.”The MOU was signed last November and included giving Alberta exemptions from certain environmental laws implemented by Ottawa, as well as the new pipeline proposal.CBC reports the initial deadlines included: a cooperation agreement on impact assessments, a methane equivalency agreement, a carbon tax equivalency agreement, and a trilateral MOU with the Pathways Alliance.Smith stated that work on the impact assessment agreement is finished, and a methane equivalency announcement is expected soon..Energy leaders warn Canada still not competitive despite Carney–Smith pipeline MOU.However, negotiations regarding the industrial carbon tax and oil sands companies collaborating on the Pathways carbon capture project have proven to be more difficult.The Pathways Alliance — a consortium of oil sands companies committed to achieving net-zero emissions — is central to moving those efforts forward.When completed, the proposed project would capture carbon emissions from 20 facilities in northern Alberta and transport them about 400 kilometres by pipeline to a storage facility near Cold Lake.While the project is expected to be built in phases between 2027 and 2040, there has yet to be a final investment decision from participating companies.“We have to sit down in a three-part agreement with the Pathways group,” Smith stated.“I would hope that we’d be able to get that one wrapped up in the next few weeks.”The missed deadlines and delays come as there are increased concerns about industrial carbon taxes throughout the oil and gas sector.The Canadian Association of Petroleum Producers (CAPP) warned in January that higher carbon costs would undermine Canada’s competitiveness on the global stage as the United States shows a “willingness to leverage all tools at their disposal to achieve geopolitical and energy goals.”.Despite the setbacks, officials in Ottawa say the MOU remains a top priority.Natural Resources Minister Tim Hodgson reiterated the Liberal government’s commitment to expanding Canada’s energy sector during a talk at CERAWeek on Monday.“Both Canada and Alberta agree that we must unlock and grow natural resource production and transportation in Western Canada, so we can get our energy and natural resources to our allies, in collaboration with indigenous peoples and industry,” Hodgson stated.

Smith confirms Alberta–Ottawa energy agreement deadlines will not be met

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