Prime Minister Mark Carney and Alberta Premier Danielle Smith are making progress in their discussions on the future of Alberta’s energy industry, as per a senior government official. The potential agreement is expected to address the longstanding demand from Smith regarding a northwest B.C. oil pipeline.
Unlike the previous Liberal government that rejected the idea of an oil pipeline to the region, Carney is open to exploring the possibility if Alberta takes the lead in engaging in Indigenous consultations and negotiations with the B.C. government, among other stipulations, the official explained.
Despite opposition from B.C. Premier David Eby and the existing B.C. tanker ban legislation from the Trudeau era, which bars oil-laden ships from docking along the northern coast of the province, the federal government is mulling over limited exemptions. It may utilize its authority under C-5, known as the One Canadian Economy Act, to allow tankers associated with the proposed pipeline to bypass the moratorium.
While the government is not considering lifting the tanker ban entirely, the official, who requested anonymity due to the sensitive nature of the ongoing talks, revealed that discussions are progressing positively towards a potential new B.C. pipeline and exemptions to the tanker ban.
However, the official clarified that any construction start date for the pipeline is not imminent. Alberta must fulfill the necessary regulatory and constitutional requirements first before Ottawa would consider referring the project to the Major Projects Office for further progress towards potential completion.
In recent years, pipeline construction has faced significant delays. The federal government’s acquisition of the Trans Mountain expansion project in 2018, which became operational in 2024 after substantial investment, has proven profitable. Trans Mountain reported earnings of approximately $568 million in the first quarter of 2025, demonstrating its success in accessing new markets in Asia and the U.S. West Coast and boosting tax and royalty revenues for governments.
Smith is optimistic that a new pipeline to the northwest could replicate these benefits. As part of the proposed agreement between Ottawa and Alberta, a commitment to reducing emissions from the oil sector is also on the table.
Carney is determined to advance the Pathways Plus project, an Alberta-based carbon capture, utilization, and storage initiative aimed at lowering emissions from the province’s oilsands exports. Additionally, the industrial carbon tax, now a key element of the government’s climate strategy following the removal of the consumer levy, is set to be reinforced as per the most recent federal budget.
The relationship between Canada and Alberta has notably improved under Carney’s leadership, with officials from both sides acknowledging the positive direction of the ongoing discussions. Carney and Smith are personally overseeing the negotiations, emphasizing that any deal will only proceed if both parties are satisfied with its terms.
During a recent press conference, Smith highlighted a forthcoming “new vision” for Alberta’s energy sector resulting from their collaboration, which could be unveiled soon, contingent on support within the federal Liberal caucus. Smith stressed the urgency of advancing energy development to address separatist sentiments in Alberta and demonstrate national unity.
Despite potential challenges, including resistance within the federal caucus, members like Jonathan Wilkinson emphasize the importance of engaging with the B.C. government and coastal First Nations before considering changes to the tanker ban. The necessity of substantial support from these stakeholders, although not necessarily unanimous, is crucial for any pipeline project’s approval.
As discussions progress, Finance Minister François-Philippe Champagne refrained from precluding the possibility of permitting tanker traffic on the northern B.C. coast, underscoring the evolving dynamics of energy security and responsible resource management in Canada.
Green Party Leader Elizabeth May stands firm against lifting the tanker ban, asserting that the presence of oil tankers on B.C.’s West Coast is highly improbable due to strong opposition from Indigenous communities and British Columbians, highlighting the significant environmental and societal concerns.
Overall, the ongoing negotiations between Carney, Smith, and various stakeholders aim to strike a balance between economic development, environmental sustainability, and regional cooperation in shaping the future of Alberta’s energy sector.