Canada's federal and provincial governments are moving forward with a C$150 billion pipeline expansion project after announcing a deal Thursday that includes port expansions, liquefied natural gas infrastructure and whale protection measures.
Prime Minister Mark Carney announced the agreement following negotiations between British Columbia and Alberta. The centerpiece is a new pipeline following the Trans Mountain route before diverting to a southern terminal, designed to transport 1 million barrels daily.
Alberta Premier Danielle Smith reversed her previous position supporting a northern route that would require removal of a 50-year tanker ban, calling the southern route "the fastest, most cost-effective path." The governments said the arrangement included "meaningful ownership stakes" for First Nations communities, though specific details about the percentage, terms and which communities would receive them were not disclosed.
British Columbia Premier David Eby said his government would support the pipeline and provide "fair compensation for environmental risks" after losing a court battle over the original Trans Mountain expansion.
The tanker ban remains in place. Marilyn Slett, president of the Coastal First Nations and elected chief of the Heiltsuk Nation, said the ban was essential, stating: "There is no technology that can clean up an oil spill at sea, and a single oil spill could destroy our way of life."
The original Trans Mountain expansion represents one of Canada's largest infrastructure cost overruns. Chris Severson-Baker, executive director of the Pembina Institute, said the project should be privately financed if economically viable. "If this was a smart economic venture, if there was any kind of reasonable return on investment to be made, a private company or companies would have put up the cash," he said. "Instead, Albertan and Canadian taxpayers will now shoulder the cost of 90% of this project—which will likely run into the tens of billions of dollars."
The Climate Action Network acknowledged Carney's geopolitical rationale but argued climate change represents the real threat. "Continuing to expand fossil fuel production when Canadians are already living with climate chaos is simply dangerous," the group said in a statement.
