Canada's Carney Says Alberta Pipeline Proposal Needs British Columbia, Indigenous Approval

By Paul Vieira

OTTAWA--Canadian Prime Minister Mark Carney says an agreement with the oil-rich province of Alberta, expected to be revealed Thursday, would require the blessing of British Columbia and regional indigenous leaders before a new crude-carrying pipeline can be built to the Pacific Coast.

Carney is scheduled on Thursday to be in Calgary, Alberta -- the energy patch's financial center -- to speak to the city's chamber of commerce. Local media reports indicate he will reveal a memorandum of understanding with Alberta about a new pipeline connecting the western Canadian oil patch to the country's northern Pacific Coast.

A spokeswoman for Carney didn't respond to a request for comment. A spokesman for Alberta Premier Danielle Smith declined comment.

British Columbia's Premier, David Eby, said he doesn't approve of a new energy corridor to the northern Pacific Coast because of the environmental threat it poses to the local fishery and communities. Pacific Coast indigenous organizations also oppose a new pipeline.

During the federal legislature's question-period session on Tuesday, Carney indicated the pact being negotiated with Alberta "creates necessary conditions, but not sufficient conditions" on the construction of a new crude-oil pipeline.

"We believe in cooperative federalism. We believe the government of British Columbia has to agree," he said, adding local indigenous must also approve.

Canadian Energy and Resources Minister Tim Hodgson issued a similar condition -- British Columbia's approval -- in testimony before the country's senate last month.

According to the Canadian Broadcasting Corp. and other local media, the pact between Ottawa and Alberta would provide an exemption on some environmental rules to allow for the construction of a pipeline to the Pacific Coast. Alberta's government and industry leaders have repeatedly complained that environmental policies implemented under former Prime Minister Justin Trudeau have thwarted investment in the resource sector and threatened western Canada's economic prospects.

Alberta would agree to adopt tougher industrial carbon-pricing rules, and energy companies would commit tens of billions in investments on new carbon-capture and storage technology, according to local media reports, citing government officials.

The pact would take the form of a memorandum of understanding, in which the parties agree to certain benchmarks but the terms aren't legally binding.

In October, Alberta Premier Smith said the province would lead an effort to build a new pipeline, arguing private-sector companies are shying away because of environmental rules, such as a cap on carbon emissions from the energy industry. Alberta, home to vast oil and gas reserves, believes investors would take over the project once government approval is secured.

Carney has said he wants to position Canada as a power in the conventional and clean energy fields, and has been open to a new pipeline so long as Alberta takes steps to limit carbon emissions. One of his government's top policy priorities is to advance the construction of major trade corridors and infrastructure to help rewire the economy, which is struggling because of hefty U.S. tariffs and the uncertainty over the existing U.S.-Mexico-Canada trade treaty.

British Columbia's Eby said Alberta's pipeline bid represents a "communications exercise," arguing there is no private-sector proponent and no money set aside for a new pipeline.

"The entire country seems to be particularly interested in this nonexistent project," he told reporters this week.

Eby added he told Carney on Monday that, "at a minimum, coastal [indigenous groups] and British Columbia need to be at the table in these conversations about our province."

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

November 25, 2025 16:59 ET (21:59 GMT)