TORONTO (AP) — Alberta and Ontario proposed a pipeline Monday to carry western Canadian oil east and eventually to Atlantic export terminals as Canada seeks new markets beyond the United States, reviving a project that was abandoned nearly a decade ago.
Alberta Premier Danielle Smith said the proposed 3,300-kilometer (2,050-mile) pipeline would run from Hardisty, Alberta, to Sarnia, Ontario, carrying up to 500,000 barrels of oil a day with potential
for up to 800,000 barrels. She said the corridor eventually could extend to Canada’s Atlantic coast, opening the door to oil exports to Europe.
The United States is by far the largest buyer of Canada’s crude oil, while Alberta holds one of the world’s largest proven oil reserves.
Ontario Premier Doug Ford said the pipeline would be a sound investment regardless of whether it is publicly or privately financed. A feasibility study is planned.
“There is still a lot of work ahead of us to deliver,” Ford said.
The proposal faces major hurdles including financing, regulatory approvals and consultations with the Indigenous population. A similar project, Energy East, was abandoned in 2017 after years of political, regulatory and environmental opposition, including in Quebec.
“It’s technically feasible but it would be a massive undertaking. We are only at a very early stage of the project and we don’t have the final route or cost estimates yet," said Daniel Béland, a political science professor at McGill University in Montreal. “It’s not even sure the Hardisty-Sarnia pipeline will ever be built so the idea it could at some point reach the Atlantic sounds quite speculative at this stage to say the least.”
Last week, Smith and Prime Minister Mark Carney advanced plans for a separate, taxpayer-subsidized Pacific coast pipeline intended to increase exports to Asian markets. Alberta is partnering with the federally owned Trans Mountain Corp. and Calgary-based Pembina Pipeline on that proposed project. Smith said the size of any private-sector stake has yet to be determined.
Smith has said she wants Alberta to double oil production to 8 million barrels a day over the next 10 to 15 years. She has argued that former Prime Minister Justin Trudeau ’s government damaged Alberta’s energy industry and fueled separatist sentiment.
Alberta will hold a vote this fall on whether to hold a referendum on provincial independence.
Andrew Leach, an energy economist and professor at the University of Alberta, called Smith’s oil production goals “incredibly ambitious,” noting that Alberta experienced severe inflation the last time it attempted to ramp up production so quickly. He also questioned whether oil producers would want to send crude to Sarnia, Ontario, if there were no way to move it beyond the city.
Last week, Carney acknowledged Canada’s emissions would rise in the near term as his government expands pipeline infrastructure. He has made diversifying Canada’s exports a priority in response to U.S. President Donald Trump’s trade war and has pledged to expand access to markets in Europe and Asia.
