Canada-Alberta Pipeline Deal Signed Amid Concerns Over Costs and Competitiveness
The Canada-Alberta Memorandum of Understanding (MOU) Implementation Agreement has been signed by Premier Danielle Smith and Prime Minister Mark Carney, outlining a timeline for approval of a crude oil pipeline to the West Coast.
The agreement also advances Carney's goal of pulling Canada out of the U.S. orbit.
Premier Smith called it 'a good day for Alberta and for Canada', while Prime Minister Carney said, 'Today's agreement reinforces that Alberta and Canada are lands where the opportunities are plentiful, the rules are clear, and one project means one review.'
The timeline includes:
- July 1, 2026: Alberta submits pipeline plan to Major Projects Office
- October 1, 2026: Federal government declares pipeline in national interest, fast-tracks construction approval
- September 1, 2027: Pipeline receives construction approval
The agreement also includes a carbon capture and utilization project, which will be supported by the federal government through the Carbon Capture, Utilization, and Storage Investment Tax Credit (CCUS ITC), covering about 50% of the capital cost.
However, oilsands producers are concerned that they will have to pay for the remaining 38%, citing a competitive issue with other jurisdictions. They also question the modest GHG emissions benefit of the project and its enormous cost.