Prime Minister Mark Carney and Alberta Premier Danielle Smith are expected to unveil an energy memorandum of understanding in Calgary on Thursday — a move that has drawn sharp objections from British Columbia Premier David Eby.
Eby said he spoke privately with Carney on Monday to raise three concerns about the proposed heavy-oil pipeline that would run from Alberta to B.C.’s northwest coast. However, he said the prime minister offered no assurances that the federal government would address his concerns. Eby was caught off guard last week after sources revealed that Ottawa and Alberta were close to finalizing a broad energy framework that could include a limited exemption to the long-standing tanker ban off B.C.’s northern coast — a key step toward advancing the pipeline Alberta has long advocated.
A federal source confirmed Monday that Carney and Smith are preparing to sign the MOU at a Calgary Chamber of Commerce event. As previously reported, the agreement is expected to include changes to industrial carbon pricing to support carbon-capture expansion and potential adjustments to the industrial emissions cap. The sources were not authorized to discuss the negotiations.
The potential deal aligns with Carney’s strategy of boosting Canada’s economic independence from the United States, but it has triggered environmental and Indigenous-rights concerns in B.C. Eby said his government had not been included in the discussions and reiterated to Carney that First Nations must be involved in any proposal affecting their territories. He also argued the tanker ban should remain in place and said any major federal subsidy for an Alberta pipeline should be matched with comparable support for B.C. projects.
Eby also questioned whether any private company would finance such a pipeline under current market conditions, estimating its cost at $20-billion to $30-billion. He warned that relaxing the tanker ban in the region — known for its treacherous waters — risks catastrophic consequences for fisheries, tourism and coastal communities.
The ban, formalized in 2019 under Justin Trudeau’s government, has long been supported across political lines. Eby said Carney listened to his arguments but made no commitments and urged at least the inclusion of coastal First Nations in future talks. He added that B.C.’s exclusion from the negotiations was unacceptable, saying such sidelining “would not happen to Quebec or other provinces.”
Appearing before the House natural resources committee Monday, Energy and Natural Resources Minister Tim Hodgson declined to indicate whether the government would partially lift the tanker ban, reiterating only that Ottawa will work with any project proponents who have both provincial and First Nations support. He confirmed, however, that talks with Alberta are progressing. Alberta sources said the MOU took shape during Grey Cup week through discussions between Privy Council Clerk Michael Sabia and Alberta deputy energy minister Larry Kaumeyer, with input from Carney and Smith.
Smith has previously said Alberta plans to submit a pipeline proposal to the federal Major Projects Office by May, although no private proponent has yet committed to building it. The MPO is designed to accelerate reviews of major resource and infrastructure projects.
Asked Monday about Eby’s criticism, Hodgson noted that several B.C.-based proposals have recently been referred to the MPO and said Ottawa would be engaging with the province “in short order.”
