The Trans Mountain Pipeline could soon have a sibling, and like any youngest child, it’s causing arguments and expecting someone else to pick up the tab.
What happened: Alberta and the federal government unveiled details for a new one-million-barrel-a-day oil pipeline to the West Coast — a project that would run from Bruderheim, Alberta, to the southwest coast of British Columbia.
Alberta Premier Danielle Smith appeared to prefer a northern route due to its proximity to Asian markets, but an oil tanker ban in the region and pushback from First Nations have made that route politically unfeasible.
Instead, the new pipeline will largely follow one of two paths that run alongside the current Trans Mountain Pipeline from Edmonton to southern B.C.
Smith said that the pipeline will double oilsands production over the next 10 to 15 years, generating billions that “could be used to support core social programs… bolster Canada’s national security commitments under NATO, and unlock economic prosperity for Indigenous peoples.”
Zoom in: After earlier reports that the proposal would be made without a private backer, Pembina Pipeline unveiled itself as the company handling the project. It will hold a 10% economic interest in the pipeline and will have the chance to stake another 10% once it’s completed.
Why it matters: The West Coast pipeline illustrates the high-wire act that Ottawa is trying to pull off as it looks to become an “energy superpower” without (entirely) abandoning its environmental targets and Indigenous consultations.
The PM already said in a video address this week that Canada will not meet its greenhouse gas emissions targets as it focuses on boosting oil and gas exports.
Our take: Before today, the status of this whole project seemed murky, but with Pembina onboard and Smith willing to compromise on the route, it seems like it’s really happening. This could be the project that mends the Ottawa-Alberta divide… or widens it if too many controversies arise when construction begins.
