While Alta. Premier Danielle Smith says her province plans to lead an effort to build a new oil pipeline, she won’t say the maximum amount of taxpayer funding she is willing to commit to the project.
On Wednesday, Smith announced Alberta is committing $14 million to be the proponent of, and to fund the initial planning stages for a proposed bitumen pipeline to British Columbia’s northwest coast. By doing so, the province will lead a “technical advisory group” that includes Enbridge Inc., South Bow Corp. and Trans Mountain Corp, but none of those companies would be obligated to be involved in the project.
Speaking to reporters in Calgary, Smith said she hopes this latest proposal will make the federal government’s next phase of major projects, which is set to be announced sometime in November by the Grey Cup.
Meanwhile, in an interview with CTV Power Play on Wednesday, Smith says she is “very confident” the private sector will step up once the right conditions are met, which includes a lift of the tanker ban.
“It’s going to be up to Prime Minister (Mark) Carney whether or not he wants to work with us on being able to advance these kinds of projects or not,” Smith said.
When pressed by host Vassy Kapelos on how much taxpayer money she is willing to invest in the potential project, Smith wouldn’t answer directly.
“Are you asking me if I have $34 billion kicking around to be able to pay for this? No, I don’t. Nor does the federal government,” Smith said.
Pressed again by Kapelos whether $14 million is the province’s limit, Smith said “I hope so.”
“We have to find out what it’s going to cost to build. I’ve been told that it could be anywhere from $20 to $30 billion, and no, Alberta doesn’t have the money to build $20 to $30 billion. We need a private sector proponent,” Smith added.
In a technical briefing with reporters on Wednesday, provincial officials said they have not yet received a commitment from a private firm to take over the project.
Smith’s comments on Wednesday contrast remarks she made earlier this year, in which she said governments should not have to be involved in financing pipeline projects.
Alberta has ‘right’ to be pipeline proponent: Minister Hodgson
In a statement to CTV News, Energy and Natural Resources Minister Tim Hodgson did not express explicit support for Alberta’s proposal to be the proponent of a pipeline, but said the province has the “right to do so.”
“If Alberta wishes to be the initial proponent and funder of a pipeline to the West Coast and put it forward to the MPO (Major Projects Office), that is within their right to do so,” Hodgson said. “We have an active and constructive dialogue with Alberta and will always look for ways to advance shared priorities.”
In September, the federal government announced its first phase of major projects, with another list of potential projects that Ottawa would like to see further development on.
One of those potential projects is Pathways Plus, an Alberta-based carbon capture, utilization and storage project.
“We have listed Pathways Plus as a transformative strategy for Canada and have been clear that a pipeline project must move forward in conjunction with the Pathways Project, which will decarbonize our oil sands to the equivalent of taking over 4.75 million cars off the road,” Hodgson’s statement went on to say.
The MPO, which is being led by Dawn Farrell, former CEO and chair of the board of directors of the Trans Mountain Corporation, is now working to streamline and fast-track regulatory approval for the recommended projects, as well as help further develop the projects under consideration.
The MPO was established under Bill C-5 — dubbed the Building Canada Act by the Liberals — and aims to give government sweeping new powers to approve major projects of national interest, which could include a tanker ban lift.
‘Not a real project:’ B.C. Premier
British Columbia has long opposed a pipeline to bring oil from Alberta to the province’s coast.
Speaking to reporters on Wednesday, B.C. Premier David Eby sharply criticized Smith, saying her proposal is “not a real project” with no private sector component and “incredibly alarming.”
“We need a major projects office at the federal level. Not a major distractions office. Not a major politics office, but an office that advances real shovel ready projects that will move this economy forward in British Columbia and nationally,” Eby said. “And what I’m seeing from Alberta directly threatens that.”
Smith said she called Eby on Monday to give him a heads up about the announcement.
Meanwhile, Conservative Leader Pierre Poilievre continued to criticize the federal Liberal government, saying Carney needs to “get out of the way” for a pipeline to be built.
“We don’t need another law, another regulation, another set of bureaucrats to meet. We don’t need a committee to talk about all the things that can’t be done. We just need Mark Carney and the Liberals to repeal their anti-development laws and taxes and get out of the way,” Poilievre said while speaking to reporters on Parliament Hill Wednesday.
With files from CTV News’ Rachel Swatek
