Smith government to submit West Coast pipeline proposal without private-sector proponent

CALGARY — The Alberta government will be submitting its long-awaited new oil pipeline proposal to the BC Coast to the Major Projects Office (MPO) on Canada Day, but without a private proponent leading the project.Two sources close to the matter — one from the government and one from the energy sector — have told the Globe and Mail that Premier Danielle Smith’s government will meet the July 1 submission deadline, with Alberta acting as the project’s initial proponent.The proposed one-million-barrel-per-day pipeline to the West Coast has been the subject of much speculation in recent months ever since Smith and Prime Minister Mark Carney signed the original memorandum of understanding (MOU) on energy in November.In May, the two leaders signed an updated version when they reached a deal to push back the date for an effective industrial carbon tax of $130 a tonne to 2040.Currently, both governments are seeking to increase Canadian energy exports to the Asian market, which is seeing growing long-term demand for oil and natural gas, especially considering the conflict in Iran and the uncertainty surrounding the Strait of Hormuz.Once the proposal is submitted, Ottawa will have until October 1 to determine whether or not the project qualifies as one of national interest under the federal Building Canada Act..POLL: Canadians back pipeline expansion as Carney maintains strong approval.If it is approved, the feds have identified September 1, 2027, as a target date for construction approval, with Alberta officials having previously stated the crude oil pipeline could be operational by 2033 or 2034.Federal and provincial officials have repeatedly said a new pipeline would ultimately be built and financed by the private sector rather than taxpayers. However, many in the sector, such as Enbridge Inc., have questioned the viability of the project, in particular the financial risks associated with a multi-billion-dollar oil project.The proposal is expected to be accompanied by ongoing negotiations between Alberta and Ottawa over the Pathways carbon-capture project, another major component of the MOU and a source of contention, as critics such as Cenovus CEO Jon McKenzie have questioned whether the government and private sector would get sufficient value from the cost of the Pathways project, which is projected to be between $20 billion and $30 billion.“It’s difficult to imagine anybody would believe that this is a good use of funds, regardless of their political orientation,” McKenzie told an audience at the Global Energy Show earlier this month.Another unsolved question also remains: the pipeline’s route, with Smith having frequently promoted a northern corridor that would transport Alberta crude to the port of Prince Rupert, which is viewed as strategically attractive because of its deep-water access and shorter shipping distances to Asia, allowing larger crude tankers to serve overseas customers more efficiently.Smith is expected to make a “major announcement” regarding the proposal on Thursday.

Smith government to submit West Coast pipeline proposal without private-sector proponent

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