Ford Commits to Pipeline Investment as Costs Soar

Ontario Premier Doug Ford has committed to contributing financially to the proposed Northern Shield Energy Corridor, a pipeline that would transport crude oil from Alberta to Sarnia, Ontario. The pipeline is approximately 3,300 kilometers long and would carry around 500,000 barrels of oil per day across four provinces.

Ford stated at an energy services event in Calgary on Monday that the provincial government will 'kick off' the project with a substantial investment, but will not be a majority partner. He believes investing public dollars in the pipeline is the right decision due to its economic benefits for Ontario and Canada as a whole.

The Northern Shield Energy Corridor has no formal federal backing, unlike another proposed pipeline from Alberta to the West Coast, which is expected to receive a major project designation from Ottawa. The Alberta-Ontario pipeline would require significant investment from oil producers to pump more barrels into the market, and its cost has been estimated at $35.2 billion to $43.7 billion.