Latest news with #PathwaysAlliance
Calgary Herald
4 hours ago
- Business
- Calgary Herald
Alberta and Ottawa tout a grand bargain on 'decarbonized' oil but some are skeptical
Article content OTTAWA — 'Grand bargain' was the phrase of the day on Parliament Hill after Prime Minister Mark Carney and his provincial counterparts found common ground on oil and gas development. Article content 'If (the Conservatives) were listening to yesterday, there is a grand bargain,' Energy Minister Tim Hodgson boasted to the Opposition benches. Article content Article content 'There is a bargain that the premier of Alberta has signed onto.' Article content Article content Alberta Premier Danielle Smith left Monday's first ministers' meeting with a new deal exchanging oil sands access to coastal waters for massive investments in decarbonization technologies, but experts warn this could be a costly pipe dream. Article content Article content 'I'm worried we're seeing (the first ministers) fall into a trap of wanting to have their cake and eat it too,' said Tim McMillan, a partner at Garrison Strategy and the former head of the Canadian Association of Petroleum Producers. Article content 'Let's call it the grand bargain,' Smith told reporters in Saskatoon, referring to the idea of twinning new pipeline proposals with large-scale decarbonization projects. Article content Carney said Monday that he'd consider fast-tracking a new oil pipeline to the West Coast if it shipped 'decarbonized barrels' to new markets. Article content Article content 'There's real potential there (and), if further developed, the federal government will look to advance it,' said Carney. Article content Article content But McMillan says the devil could be in the details. Article content 'I don't know exactly what they're talking about with decarbonization, but… it may be linked to carbon capture, which does not increase our exports (or) investability,' said McMillan. Article content The Calgary-based Pathways Alliance, a group of six major oil sands producers, has put forward a $16.5-billion decarbonization network that would reroute carbon emissions from nearly two dozen facilities to an underground hub near Cold Lake, Alta.
National Observer
10 hours ago
- Business
- National Observer
Premiers praise meeting with Carney, but no specific projects identified
Ontario Premier Doug Ford said Monday's gathering of the country's premiers to talk over nation-building projects with Prime Minister Mark Carney was the "best" they have had in the last decade. The comments amount to a lightly veiled jab at former prime minister Justin Trudeau, who frequently had frosty relations with the group, especially prairie premiers looking to build out their energy sectors. Ford said the premiers, and the whole country along with them, stand united as Canada comes under attack from US President Donald Trump's tariffs — even as some in the group scrapped over well-worn pipeline politics. Provincial and territorial leaders sat down with Carney in Saskatoon on Monday and each premier came armed with wish lists of major projects they hope the federal government will deem to be in the national interest, then fast track for approval. "The point is to build the certainty, the stability and the ambition that builders need to catalyze enormous investment — investment to make Canada into an energy superpower," Carney said at the closing news conference. While the group mulled over a number of potential "nation-building" natural resource and infrastructure developments in private, they did not release a final list afterward that would show they accomplished something concrete. Still, Ford said there is no reason to take that as a bad sign. "Nothing was carved in stone at this meeting," he said, adding he had no expectations the prime minster would approve specific projects at this meeting. "I described him today as Santa Claus. He's coming and his sled was full of all sorts of stuff. Now he's taking off back to the North Pole and he's going to sort it out and he's going to call us." The federal Liberals have yet to reveal in Parliament their promised legislation to speed up approvals for select projects to a maximum of two years. That could be tabled as early as this week. When he was pressed on the lack of specifics after the meeting, Carney told reporters he could name lots of examples of contenders. He then rattled off a list that included the Grays Bay Road and Port, which would connect southern Canada to the Arctic by road, along with the Ring of Fire mining project in northern Ontario. Notably, he name dropped the Pathways Alliance oilsands project, though he did not commit to any. Carney said the group would refine what should count as priority projects over the summer months and touted that as "private proponents become aware of the opportunity here, we're going to see more projects coming forward." He said the upcoming federal legislation will also mandate meaningful consultation with Indigenous Peoples, including in which projects get picked and how they are developed. Alberta Premier Danielle Smith went into the meeting warning that any list that doesn't include new pipelines would send a bad message to her province. She left the meeting on a positive note, saying it's up to political leaders to find a proponent for a new pipeline and that she's willing to give this process a chance. "I'm encouraged by the immediate change of tone that we've seen from recent months," she said. "When we hear the prime minster talking about being an energy superpower, we haven't heard that language for some time." Carney made a point to specify that "decarbonized" barrels of oil would be "within the broader context of national interest." "Yes, there's real potential there," he said. "It took up a good deal of our time in discussions with potential to move forward on that. If further developed, the federal government will look to advance it." Smith touted the Pathways Alliance project, a group of major Canadian oilsands companies that argues it can fight climate change through using carbon capture and storage to reduce emissions, as a way to do that. "There's lots of ways to decarbonize, but the Pathways project is an expensive project," she said. "It would cost anywhere from $10 to $20 billion to get built. And to make the economic case for that, having more egress with more barrels to be sold to Asia is going to pay for it. If we had a million-barrel-a-day pipeline going to the northwest BC coast, that would generate about $20 billion a year in revenues, and so that seems like a pretty good value proposition." But headed into the meeting, BC deputy premier Niki Sharma said Smith's proposal for a bitumen pipeline to BC's northern coast, such as by reviving the stalled Northern Gateway, has "no proponent" at this stage. 'We are focusing on these shovel-ready projects, not theoretical projects with no proponents," Sharma said in a statement sent afterward. "There is also an existing, underused pipeline Canadian taxpayers paid $34 billion for, with capacity to spare." This report by The Canadian Press was first published June 2, 2025.
Globe and Mail
12 hours ago
- Business
- Globe and Mail
Should Canada build a pipeline to the West or the East?
Alberta Premier Danielle Smith went into the first ministers' meeting calling for a commitment to an oil pipeline to the northern B.C. coast. Some Eastern Canadian premiers suggested they're keen on an oil pipeline that would go across the country from west to east. Neither exists yet. There's no company proposing to build either. But even as concepts, they are very different. They would serve very different purposes. One is driven primarily by economics and diversifying markets. The other is about Canada's energy security. Both are concerns kindled by U.S. President Donald Trump's trade war. But is the chief goal to sell oil to new overseas markets or to protect Canada's domestic energy security? There was no definitive answer on any pipeline route after Monday's meeting in Saskatoon between the premiers and Prime Minister Mark Carney. But Mr. Carney indicated he would support a pipeline that delivers 'de-carbonized' barrels – and hinted that a pipeline could go ahead if the Pathways Alliance project for carbon capture also advances. Ms. Smith called that a 'grand bargain.' And the Prime Minister certainly made it sound like he sees that pipeline going to the West Coast. 'The opportunity is there. The market is there, in Asia,' Mr. Carney said. That suggests the Prime Minister favours a pipeline to the Pacific over one across the country. That's what Ms. Smith wants – a pipeline to northern B.C., a route that is shorter and more profitable. It would diversify oil-export markets and make Canada's energy industry less dependent on U.S. customers. Carney tells energy leaders how infrastructure projects in national interest will be assessed Despite all the new political will, that proposal might not get through the gauntlet of opposition and legal challenges that killed a previous proposal for a pipeline to northern B.C., Northern Gateway. Even the Conservative government of former prime minister Stephen Harper wasn't really willing to back Northern Gateway – it approved the project with 209 conditions and then handled it with a 10-foot pole. The Federal Court of Appeal later quashed the approval because the government didn't meet its duty to consult First Nations. That duty is still there, entrenched in constitutional law, and no political leader can skip it. Some premiers seemed to prefer a west-to-east pipeline. New Brunswick Premier Susan Holt expressed interest in a pipeline to Eastern Canada 'to make sure that all of Canada can benefit from its resources.' Ontario Premier Doug Ford likes the idea, too. Carney faces pipeline pressure ahead of premiers meeting focused on infrastructure Opinion: Carney's window of political opportunity for pipelines is short But building a pipeline across the country would be enormously expensive, making the tolls to ship oil through it so high that it might not be profitable. An east-west pipeline might not get built unless the government steps in to subsidize it. The only real justification for doing that would be to make sure that the oil shipped from Western to Eastern Canada doesn't flow through the United States. In January, when premiers discussed potential retaliation to the tariffs that then-president-elect Trump was threatening, there was a lot of bluster that Canada might cut off oil exports to the U.S. But Central Canada's oil supply travels from Alberta through the Line 5 pipeline in Wisconsin and Michigan and crosses back into Canada at Sarnia, Ont. In theory, the U.S. could cut off a lot of Canada's oil supply, too. Just months ago, that seemed like a real energy-security vulnerability to some in the government. Does it still? Does it matter that Michigan Governor Gretchen Whitmer, citing concerns of a spill in the Straits of Mackinac, has engaged in a nearly five-year-long legal battle to shut Line 5? Building a pipeline to carry bitumen to Eastern Canada would have its share of issues, too. TC Energy cancelled its Energy East pipeline proposal in 2017. Quebec Premier François Legault, who has recently expressed openness to pipelines, said Monday his province would have to approve any such project. No oil pipeline project has a backer yet. Ms. Smith insisted that a pipeline company would come forward if the federal government killed some of its environmental regulation, but none have yet expressed real interest. The 'grand bargain' that Ms. Smith read into Mr. Carney's words isn't concrete, either. But it now seems that in the mind of Mr. Carney, a future oil pipeline will flow to the Pacific.
Hamilton Spectator
a day ago
- Business
- Hamilton Spectator
Premiers heap praise on meeting with Carney, but no specific projects identified
SASKATOON - Ontario Premier Doug Ford said Monday's gathering of the country's premiers to talk over nation-building projects with Prime Minister Mark Carney was the 'best' they have had in the last decade. The comments amount to a lightly veiled jab at former prime minister Justin Trudeau, who frequently had frosty relations with the group, especially prairie premiers looking to build out their energy sectors. Ford said the premiers, and the whole country along with them, stand united as Canada comes under attack from U.S. President Donald Trump's tariffs — even as some in the group scrapped over well-worn pipeline politics. Provincial and territorial leaders sat down with Carney in Saskatoon on Monday and each premier came armed with wish lists of major projects they hope the federal government will deem to be in the national interest, then fast track for approval. 'The point is to build the certainty, the stability and the ambition that builders need to catalyze enormous investment — investment to make Canada into an energy superpower,' Carney said at the closing news conference. While the group mulled over a number of potential 'nation-building' natural resource and infrastructure developments in private, they did not release a final list afterward that would show they accomplished something concrete. Still, Ford said there is no reason to take that as a bad sign. 'Nothing was carved in stone at this meeting,' he said, adding he had no expectations the prime minster would approve specific projects at this meeting. 'I described him today as Santa Claus. He's coming and his sled was full of all sorts of stuff. Now he's taking off back to the North Pole and he's going to sort it out and he's going to call us.' The federal Liberals have yet to reveal in Parliament their promised legislation to speed up approvals for select projects to a maximum of two years. That could be tabled as early as this week. When he was pressed on the lack of specifics after the meeting, Carney told reporters he could name lots of examples of contenders. He then rattled off a list that included the Grays Bay Road and Port, which would connect southern Canada to the Arctic by road, along with the Ring of Fire mining project in northern Ontario. Notably, he name dropped the Pathways Alliance oilsands project, though he did not commit to any. Carney said the group would refine what should count as priority projects over the summer months and touted that as 'private proponents become aware of the opportunity here, we're going to see more projects coming forward.' He said the upcoming federal legislation will also mandate meaningful consultation with Indigenous Peoples, including in which projects get picked and how they are developed. Alberta Premier Danielle Smith went into the meeting warning that any list that doesn't include new pipelines would send a bad message to her province. She left the meeting on a positive note, saying it's up to political leaders to find a proponent for a new pipeline and that she's willing to give this process a chance. 'I'm encouraged by the immediate change of tone that we've seen from recent months,' she said. 'When we hear the prime minster talking about being an energy superpower, we haven't heard that language for some time.' Carney made a point to specify that 'decarbonized' barrels of oil would be 'within the broader context of national interest.' 'Yes, there's real potential there,' he said. 'It took up a good deal of our time in discussions with potential to move forward on that. If further developed, the federal government will look to advance it.' Smith touted the Pathways Alliance project, a group of major Canadian oilsands companies that argues it can fight climate change through using carbon capture and storage to reduce emissions, as a way to do that. 'There's lots of ways to decarbonize, but the Pathways project is an expensive project,' she said. 'It would cost anywhere from $10 to $20 billion to get built. And to make the economic case for that, having more egress with more barrels to be sold to Asia is going to pay for it. If we had a million-barrel-a-day pipeline going to the northwest B.C. coast, that would generate about $20 billion a year in revenues, and so that seems like a pretty good value proposition.' But headed into the meeting, B.C. deputy premier Niki Sharma said Smith's proposal for a bitumen pipeline to B.C.'s northern coast, such as by reviving the stalled Northern Gateway, has 'no proponent' at this stage. 'We are focusing on these shovel-ready projects, not theoretical projects with no proponents,' Sharma said in a statement sent afterward. 'There is also an existing, underused pipeline Canadian taxpayers paid $34 billion for, with capacity to spare.' This report by The Canadian Press was first published June 2, 2025.
National Observer
a day ago
- Business
- National Observer
Carney discussed "partnerships" with oil and gas executives in Calgary
Prime Minister Mark Carney sat down with oil and gas executives in Calgary Sunday to discuss partnerships and to get their input for his plans to make Canada an energy superpower. Carney, in his first visit to Calgary since being sworn in as prime minister, held a closed door roundtable with more than two dozen members of the energy sector. Attendees included Tourmaline Oil CEO Michael Rose, Pathways Alliance President Kendall Dilling, ATCO CEO Nancy Southern, Imperial Oil President John Whelan and Jon McKenzie, president of Cenovus Energy. Reporters were only allowed to hear a few comments from the prime minister before being asked to leave the room at the Harry Hays building. "Thank you for convening on a Sunday morning and also for what you've all been doing to help build our our economy, build a future," Carney said. "I'd like to thank a number of you who wrote directly to me a month or so ago and I felt it would be best to get together and discuss it in much more detail than through an exchange of letters given the importance of the issues." Thirty-eight CEOs of Canadian energy companies signed a letter congratulating Carney on his April 28 election win and pitching policy measures they say would help the prime minister make good on his promise to build the fastest-growing economy in the G7. That would include scrapping the federal emissions gap on oil and gas producers and repealing industrial carbon pricing to help bolster the industry. The CEOs want an overhaul of the Impact Assessment Act, which sets out the process for assessing major projects, and of the Oil Tanker Moratorium Act, which bans oil tankers carrying more than 12,500 metric tons of crude from stopping along parts of British Columbia's coastline. Carney campaigned on expediting reviews of major energy infrastructure projects. He promised before the election to move forward with a "one project, one review" approach by recognizing assessments conducted by the provinces and territories. The federal government unveiled its proposed emissions cap regulations late last year. They would compel upstream oil and gas operations to reduce emissions to 35 per cent below where they were in 2019 by sometime between 2030 and 2032. "Partnership is a theme for our discussion this morning," Carney said, accompanied by Energy Minister Tim Hodgson, Dominic LeBlanc, the minister responsible for Canada and US trade and Emergency Management Minister Eleanor Olszewski. "It's a critical time for our country. The world's certainly more divided and dangerous and the imperative of making Canada an energy superpower in all respects has never been greater. We will do everything we can at the federal government level to support those partnerships." Alberta Premier Danielle Smith was asked on her weekend radio show if she was concerned that the federal throne speech didn't include a mention of pipelines. "He may not have said the words 'oil and gas' and he may not have said the word 'pipeline,' but conventional energy means oil and gas, and the only way to get it to market efficiently is through pipelines," said Smith, who says she's hoping for a one-on-one with Carney at Monday's First Ministers conference in Saskatoon. Smith also praised Carney for being more willing to engage with the premiers on issues of national importance than his predecessor Justin Trudeau. She was coy when asked about consequences if Carney doesn't deliver, saying she prefers to be optimistic. Carney also took a moment on Sunday to thank the Department of National Defence, the provinces of Manitoba, Saskatchewan and Alberta, and volunteers involved in fighting extensive wildfires and co-ordinating large-scale evacuations. "The good news is those are proceeding well at this stage but of course it's not over until it's over and we're at the start of the forest fire season across the country," he said. "So we'll stay committed to doing everything that we can with partners." This report by The Canadian Press was first published June 1, 2025.
