Ottawa is leaning toward a southern British Columbia pipeline route to Vancouver for a new oil conduit that could carry an additional one million barrels per day to Asian markets, bypassing Alberta\u2019s preferred northern path to Prince Rupert, according to two federal sources.<\/p>\n
The southern route, potentially running alongside the existing Trans Mountain pipeline or on a separate path, is seen as facing fewer environmental and Indigenous opposition hurdles compared to the northern option. A new terminal for tanker loading would be required in Vancouver, where the port authority is already planning to dredge the Second Narrows waterway at Burrard Inlet to accommodate fully loaded Aframax-class oil tankers at the Westridge Marine Terminal. However, constructing beside an operational pipeline poses significant engineering and safety challenges, an Alberta source noted.<\/p>\n
Alberta Premier Danielle Smith has championed the northern route to Prince Rupert, which offers a 36-hour shorter sailing time to Shanghai and access to North America\u2019s deepest port, ideal for the massive crude carriers that can haul two million barrels of heavy oil sands crude. Despite her preference, Smith has not ruled out a southern path, though she remains concerned about capacity constraints at Vancouver\u2019s port.<\/p>\n
The pipeline plan stems from a November memorandum of understanding between Prime Minister Mark Carney and Smith, aimed at unlocking Alberta\u2019s energy sector and diversifying export markets amid U.S. trade tensions. While the MOU did not specify a route, Alberta is set to propose the northern path to Ottawa\u2019s Major Projects Office this summer, expecting a designation of national importance by fall. Ottawa, however, will evaluate the proposal against criteria including economic benefits, Indigenous interests, and climate goals under the Building Canada Act.<\/p>\n
Progress on related MOU provisions shows mixed results. Agreements on streamlining environmental assessments and cutting methane emissions by 75% from 2014 levels by 2035 are secured, but carbon pricing\u2014moving from $20 to $130 per tonne\u2014and the Pathways carbon storage project in the oil sands remain unresolved despite near-daily negotiations.<\/p>\n
Demand for pipeline capacity is intensifying as Calgary-based giants like Cenovus and Suncor report production records and plan further expansions, fueled by high oil prices and global energy security concerns. Cenovus CEO Jon McKenzie emphasized the urgent need for policies to support growth, noting the world\u2019s demand for Canadian barrels amid disrupted global supplies. The Pathways project, backed by six major energy firms, could decarbonize the oil sands, aligning with climate goals if carbon pricing disputes are settled.<\/p>\n
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.<\/p>\n","protected":false},"excerpt":{"rendered":"Ottawa is leaning toward a southern British Columbia pipeline route to Vancouver for a new oil conduit that…\n","protected":false},"author":2,"featured_media":13909,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[7443,4136,61],"class_list":{"0":"post-13908","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ottawa","8":"tag-alberta-pipeline","9":"tag-major-projects-office","10":"tag-ottawa"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/13908","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/comments?post=13908"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/13908\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media\/13909"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media?parent=13908"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/categories?post=13908"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/tags?post=13908"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}