Canada's Pipeline Summer: A New Era of Energy Security
The Canadian government has been making waves in the energy sector this summer, earning the nickname 'pipeline summer' due to its numerous announcements for new pipelines or expansions. In April, Enbridge Inc.'s $4-billion Sunrise natural gas pipeline project was approved in British Columbia, while Prime Minister Mark Carney and Alberta Premier Danielle Smith announced a MOU Implementation Agreement to move forward with a West Coast oil pipeline in May.
By July, a southern route for the pipeline had been chosen, with Delta B.C.'s Roberts Bank proposed as the new terminal/port. The project was designated 'in the national interest' under the Building Canada Act on August 4th, allowing the federal government to fast-track approvals.
Meanwhile, Ontario Premier Doug Ford announced a Northern Shield Energy Corridor route for a pipeline to carry 500,000 barrels of Alberta crude to refineries in southwestern Ontario in July. Also in July, ATCO Energy's 146-mile, $2.9 billion Yellowhead Gas Pipeline was approved by the Alberta Utilities Commission.
Kendall Dilling, President of Oil Sands Alliance, emphasized that Canada and the U.S. are viewed as 'very low risk' due to their natural gas and oil exports. He noted that having a choice in suppliers is crucial, and it's compelling for both countries to provide resources not only for their own needs but also for their allies.
The panellists at the Pacific Northwest Economic Region's 2026 conference agreed that building pipelines is a long-term bet, with a 25-year lifespan. Erin Rolstad, VP Regulatory & Mainline Commercial Strategy at Enbridge, highlighted the importance of addressing the Western Canadian Select (WCS) differential by increasing pipeline capacity.
Enverus Intelligence Research projects that WCSB oil production can grow by ~1 MMbbl/d over the next seven years, primarily driven by Steam-Assisted Gravity Drainage (SAGD) development. However, more pipeline capacity will be needed by the early 2030s.