Pipeline progress? Memorandum of understanding between Alberta, feds in the works: sources

Sources say a memorandum of understanding is in the works between Alberta and the federal government to pave the way for a new pipeline.

A deal could be coming later this week to pave the way for a new pipeline from Alberta to the B.C. coast.

Sources say a memorandum of understanding is in the works between Alberta and the federal government.

But it would lack what might be its most crucial component—buy-in from the people whose land the pipeline would run through.

When asked about a pipeline deal on Sunday, Prime Minister Mark Carney stuck to his nation-building script.

“What we’re looking to do and what we are doing is a series of major investments—nation-building projects that make our country stronger, more independent from the United States,” Carney said.

And on her weekend radio show, Premier Danielle Smith said she’s been in constant contact with the prime minister.

“I really hope that we will have an agreement ready and available to be released soon,” she said.

Sources say the memorandum of understanding that’s expected to be signed this week will push the pipeline project forward and necessitate some kind of carve-out from the tanker ban along the B.C. coast.

It’s also expected to scrap the planned federal emissions cap, bolster carbon capture and change the industrial carbon tax.

Environmental groups say it’s not worth the cost.

“Definitely not enough is happening here. This is not striking a balance. It is not a grand bargain at all. It’s a raw deal,” said Keith Brooks, programs director for Environmental Defence.

In B.C., the plan is landing with a thud.

“There’s no project, there’s no proponent, there’s no route, there’s no possibility, because of the cost of this venture, of getting the kind of take-or-pay contracts that would allow the pipeline to go ahead,” said Premier David Eby.

Coastal First Nations leaders warn any deal affecting the tanker ban signed without them is dead in the water.

“We’re ready for them, and consultation for them is going to be a tough road,” said Luutkudziiwus (Gordan Sebastian), Gitxsan hereditary chief.

“I don’t believe it’s going to happen.”

Trade experts, meanwhile, say global markets will be watching whether Canada proves it can move major projects from talk to construction.

“It’s a question of whether or not we can play with the big boys, or whether or not we’re going to continue to be sitting on the porch watching the world go by,” said Carlo Dade with the University of Calgary School of Public Policy.

“They’re going to want to see some certainty that this isn’t just talk.”

The federal government says it wants the backing of British Columbia as well as Indigenous communities.

Alberta wants to leverage private sector capital, but a memorandum of understanding is not a contract to start construction and does not guarantee that will ever happen.