Premier Smith says B.C.’s support of additional capacity for TMX not enough in pipeline pitch

Alberta is inching closer to a deal with the federal government on a new pipeline to British Columbia's north coast—a project B.C. opposes.

Pipeline politics are intensifying between Alberta, British Columbia, and Ottawa as the federal and Alberta governments inch closer to an energy deal while B.C. has signaled support for maximizing capacity on an existing line.

Alberta is pushing for a deal with Ottawa on a new pipeline project to B.C.’s north coast—a project the B.C. government opposes.

But B.C. has issued its support to maximize capacity in the Trans Mountain Expansion, currently operating at 85 percent, which could add about 360,000 more barrels of oil per day to the market.

“B.C. is essentially saying that Alberta should be able to get its oil to market,” said Richard Masson, an executive fellow at the University of Calgary’s School of Public Policy.

“B.C. benefits if we can dredge the Second Narrows Bridge that allows for other types of ships to make it into that harbor.”

In August, Trans Mountain CEO Mark Maki told CTV News that Ottawa should prioritize adding capacity to existing infrastructure before launching new projects.

“Optimize the kit that you have, which you can do in steps over time, and then add capacity as it’s needed,” he said.

“And then you have time to evaluate the bigger issue, which is, do you need another pipeline somewhere?”

Despite supporting Trans Mountain optimization, Premier David Eby continues to oppose any pipeline project through Northern B.C., ending on the B.C. north coast..

“There’s no route. There’s (also) a tanker ban that B.C. strongly supports,” said B.C. Energy Minister Adrian Dix.

“The project does not make economic sense,” Dix said. “There are alternative projects that make more sense for Canada and for Alberta.”

For a north coast pipeline project to be approved, the federal oil tanker ban would have to be lifted.

The north coast pipeline currently does not have a private proponent. Alberta is spending $14 million to finance early regulatory work.

Hopeful

Smith remains hopeful a deal with Ottawa will be ironed out in short order.

“We’re doing the technicals on a new pipeline to the northwest B.C. coast. We have a potential to also do something similar to Churchill,” said Smith.

Alberta and Ottawa are expected to sign a Memorandum of Understanding (MOU) which could also include scrapping the planned federal emissions cap and stronger industrial carbon pricing.

“What we’re seeing is that there’s a change in the in the public dialogue about the need for oil and natural gas,” Smith said.

“I would like to see expansions in all direction.”

However, Masson cautioned against expecting certainty for any pipe in the ground.

“I would be surprised if the MOU gives any kind of certainty to a north coast pipeline,” said Masson.

Smith says she plans on having a pipeline project proposal put forward in the spring and submitted to the Major Projects Office in Ottawa.