Quebec's Shift Paves Way for New Pipeline Expansion

Canada's premiers are pushing for a new pipeline to connect Alberta oil to East Coast markets, including Europe. Ontario Premier Doug Ford and Alberta Premier Danielle Smith have proposed the Northern Shield Energy Corridor, which would transport 500,000 barrels of crude oil per day from Hardisty, Alberta to Sarnia, Ontario.

Ford sees potential for this pipeline to be extended to Saint John, New Brunswick, opening up markets in Europe and beyond. This echoes a previous project, the Energy East pipeline, which was proposed in 2011 but abandoned in 2017 due to opposition from Quebec's government.

New Premier of Quebec Christine Fréchette has indicated a willingness to reconsider Quebec's stance on energy issues, citing geopolitical instability and economic uncertainty. This shift may pave the way for new pipelines, including an extension of the Northern Shield Corridor to Saint John and expansion of existing gas pipelines.

The federal government would need to lead pipeline expansion efforts, as they have done with the Trans Mountain project on the West Coast, a Crown corporation that has a 90% stake in the project. Indigenous leaders are also seeking meaningful consultation and potential equity stakes in pipeline projects.