Ottawa's Grip on West Coast Oil Pipeline Raises Taxpayer Concerns
The proposed West Coast Oil Pipeline is on shaky ground as Ottawa's influence becomes increasingly evident.
The federal Liberal government has set a Sept. 1, 2027 deadline for final approval of the pipeline, eight months longer than Alberta Premier Danielle Smith requested in her Jan. 2026 letter to Prime Minister Mark Carney.
This delay is just one concession by the Alberta government following its agreement to a carbon price framework rising to $140 per tonne by 2040.
The pipeline's fate is now tied to the construction of the Pathways CCS project, which will require significant public financial support. Carney has made it clear that 'No Pathways, No Pipeline', indicating Ottawa's control over pipeline policy.
Lennie Kaplan, a former senior manager in Alberta's Ministry of Treasury Board and Finance, warns that this may be a taxpayer trap. The $30 billion WCOP project lacks private sector backing, with no companies willing to take on the financing burden. Analysts believe the financing structure may need to shift to a government-led backstop, putting taxpayers at risk.
Kaplan calls for transparency and demands that the Technical Advisory Group's work be released immediately, citing concerns over a 'rigorous, evidence-based and private sector-led approach' to pipeline development.