UPDATE 2-Alberta to submit proposal for new oil pipeline
* Enbridge, South Bow, Trans Mountain to advise on Alberta's proposal * Canada seeks to diversify oil exports away from US * Past pipeline projects have had years of delay
(Rewrites throughout with announcement, quotes, background)
By Amanda Stephenson Oct 1 (Reuters) -
Alberta announced on Wednesday it will submit by spring of 2026 an application for a new crude oil pipeline for fast-track approval by the federal government, even without a private company to build the project.
Canada's main oil-producing province said it will act as the formal proponent for the proposal, taking the lead on early planning and engineering work aimed at determining the route, size and cost of a pipeline. Alberta's government said the proposed pipeline could carry up to 1 million barrels per day of crude to British Columbia's northwest coast for export. It will invest C$14 million ($10.04 million) to develop a credible proposal for federal consideration, and will work with Canadian pipeline companies Enbridge , South Bow and government-owned
Trans Mountain
, which have agreed to provide advice and technical support, Alberta said.
None of the companies have committed to building the pipeline or investing in such a project, and Alberta Deputy Energy Minister Larry Kaumeyer told reporters Wednesday the government has no intention of building or owning a pipeline. The companies did not immediately respond to requests for comment.
"The objective of the Alberta government is to get it to the starting gate," Kaumeyer said, adding that in spite of growing Canadian oil production, no private sector company is willing to take the risk of proposing a pipeline project.
In recent years, major Canadian oil pipelines have faced years of regulatory delay and legal challenges, leading to cancellations for some projects and spiraling costs for others, like the
Trans Mountain expansion that opened last year.
But Canada - which currently sends 90% of its oil exports to the U.S. - is now trying to diversify oil exports in part to protect its economy against tariffs.
The Canadian government under Prime Minister Mark Carney aims to accelerate the construction of natural resource projects, and in August created a new
federal office designed to fast-track the review and approval of projects such as mines and pipelines.
If a pipeline proposal were to be approved for fast-tracking, Kaumeyer said, then a private sector partner is likely to feel confident enough to step forward and take over the project from the Alberta government.
"We are confident that there will be private capital that comes to build this pipeline," he said. Pipeline companies have repeatedly said significant federal legislative change — including the removal of a federal cap on emissions from the oil and gas sector, as well as the removal of a ban on oil tankers off B.C.'s northern coast — is required before a private sector entity would consider proposing a new pipeline.
Kaumeyer said the federal government has been made aware that Alberta will be putting forward a pipeline proposal and that Alberta and Canada are in "ongoing discussions" about the matter.
Carney's office did not immediately respond to a request for comment. |
