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Premier: Alberta and Canada have 80% agreement on pipeline proposal

Premier Danielle Smith said on Thursday that Canada and Alberta were not far apart in terms of the terms of an agreement which would set the conditions for the construction in Alberta, in exchange for environmental commitments.

on Wednesday

The main oil producing province of Canada will take the lead in early planning for a new pipeline.

Smith stated in an interview that "we're approximately 80% in accord on most aspects."

The ball is in the court of (Canadian prime minister) Mark Carney now.

The federal government didn't immediately respond to our request for comment. Smith stated that her government does not intend to build the pipeline directly from Alberta's oilsands up to the Northwest Coast of British Columbia. According to Smith, Canadian pipeline companies Enbridge and South Bow, as well as government-owned Trans Mountain, have agreed to offer advice and technical assistance to Alberta in developing its proposal.

Smith is confident that if the Canadian government approves Alberta's pipeline project, a private company will step forward to build it.

Greg Ebel, CEO of Enbridge, said in a speech delivered to an audience of businessmen on Thursday that Canada would have to lift its ban on oil tanks off the coasts of B.C. Before any pipeline company will commit to Alberta's proposal, it is important that they first listen to the coast.

Ebel stated that "no company would build a pipe to nowhere".

B.C. Premier David Eby stated on Wednesday that his province has been in support of the ban since its inception. He is adamant about the law remaining in place.

South Bow and Trans Mountain are yet to comment on the proposal. Carney's government was reported to be in talks in September with Alberta and energy companies about removing a federal cap on emissions for Canada's oil & gas industry in exchange for reducing the carbon footprint of the province and industry in other ways. The federal government also made it clear that a pipeline proposal from Alberta would only be considered if the proposed Pathways project for carbon capture and storage was approved.

Smith refused to reveal what additional commitments the federal Government may ask Alberta to make.

Alberta's government stated that the proposed pipeline would be able to carry up 1 million barrels of oil per day. Canada reached record oil production levels in 2024, as completion of the Trans Mountain expansion pipeline boosted the ability of oil companies to deliver their product. Analysts have predicted that Trans Mountain would be full by 2027 or 2028, as Canada seeks to diversify its oil exports.

(source: Reuters)