The premiers of Alberta and Ontario have proposed a new pipeline to transport western Canadian oil to the country's east, a move aimed at diversifying Canada's export markets beyond the dominant United States. Alberta Premier Danielle Smith announced the plan Monday, detailing a proposed 3,300-kilometer (2,050-mile) pipeline that would run from Hardisty, Alberta, to Sarnia, Ontario.
The pipeline is designed to carry up to 500,000 barrels of oil per day, with potential to increase capacity to 800,000 barrels. Smith indicated that the corridor could eventually be extended to Canada's Atlantic coast, opening possibilities for oil exports to Europe. The United States is currently the primary purchaser of Canadian crude oil, while Alberta possesses one of the world's largest proven oil reserves.
Ontario Premier Doug Ford stated that the pipeline would represent a sound investment, irrespective of whether financing is public or private. A feasibility study for the project is planned. "There is still a lot of work ahead of us to deliver," Ford said.
This proposal faces significant obstacles, including securing financing, obtaining regulatory approvals, and conducting consultations with Indigenous communities. A comparable initiative, the Energy East pipeline, was abandoned in 2017 following prolonged political, regulatory, and environmental opposition, notably in Quebec.
Last week, Smith and Prime Minister Mark Carney also advanced plans for a separate, taxpayer-subsidized Pacific Coast pipeline intended to boost exports to Asian markets. Alberta is collaborating with the federally owned Trans Mountain Corporation and Calgary-based Pembina Pipeline on that proposed project, though the specifics of any private-sector stake remain undetermined.
Smith has expressed a goal for Alberta to double its oil production to 8 million barrels per day within the next 10 to 15 years. She has previously criticized the former federal government for actions that she argued damaged Alberta's energy sector and contributed to separatist sentiment.
Alberta is scheduled to hold a vote this fall on the possibility of a referendum regarding provincial independence. "The previous federal government, not this one, treated Alberta like garbage," Ford remarked.
Carney acknowledged last week that Canada's emissions might increase in the short term as the government expands pipeline infrastructure. Diversifying Canada's exports has been a priority for Carney, particularly in response to trade disputes initiated by former U.S. President Donald Trump, and he has committed to increasing market access in Europe and Asia.