As the federal government and Alberta work towards an agreement that could include support for a new pipeline, B.C. Premier David Eby is calling out a pair of Western premiers who he says should “know better.”
Multiple provincial and federal government sources tell CTV News that Alberta Premier Danielle Smith and the federal government could be days away from an announcement of a memorandum of understanding(MOU). It could include changes to the industrial carbon price and support for a new pipeline to the west coast that would require an exemption under the federal tanker ban.
The Globe and Mail was first to report on the terms being discussed for the MOU.
Saskatchewan Premier Scott Moe, meanwhile, told reporters on Wednesday that he is also involved in ongoing negotiations about a deal for a potential pipeline.
Speaking to CTV Power Play with Vassy Kapelos on Thursday, Eby said he was “caught off guard” by the reported terms of the forthcoming deal, claiming he learned about the details through the media.
“There certainly was not discussion about a meeting between Saskatchewan, Alberta and the federal government negotiating the terms by which a project will be delivered in British Columbia without British Columbia at the table,” Eby said.
The tanker ban was enacted in 2019 and prohibits oil tankers carrying over 12,500 metric tons of crude or persistent oil from docking, loading, or unloading at ports on the B.C. north coast. Eby said lifting it would threaten projects already in development in the region and consensus among coastal First Nations.
“(Smith and Moe) feel to me like two tourists wearing sandals wandering off into the woods in the north shore of Vancouver, saying, ‘Don’t worry about us. We’ll be fine.’ They don’t know what they’re talking about,” Eby said.
Public tensions between Eby and Smith over a potential new pipeline from Alberta to B.C.’s north coast have been happening for months, and escalated in October, after Smith announced her province would fund the initial planning stages of a pipeline project despite the absence of a private sector proponent.
Following that announcement, Eby criticized Smith, saying her proposal is “not a real project” and “incredibly alarming.”
When asked by Kapelos whether he can engage with Smith at a time when governments are looking to diversify amid the U.S. trade threat and find a middle ground, Eby insisted Smith wants the tanker ban “rescinded without a single company” coming forward to build a pipeline.
“We are spending some political capital here in British Columbia to say, ‘Look, we get it Alberta. You want more access to tidewater,’” Eby said.
“Let’s figure out how we expand the capacity at the TMX pipeline, a pipeline that we fought tooth and nail and was imposed on us by Ottawa. But let’s sit down at the table and figure out a path forward.”
This week, the B.C. government backed a proposal to move more Alberta crude oil to the West Coast by increasing capacity to the Trans Mountain pipeline by 40 per cent, with results as early as 2026.
Speaking to reporters in Edmonton on Thursday, Smith was asked whether an MOU without a new pipeline would be enough if B.C. signalled support for increased capacity to TMX.
“No,” Smith answered. “I think that what we’re seeing is that there’s a change in the public dialog about the need for oil and natural gas.”
While Smith acknowledged there is “more work to do on the technical side” before reaching an agreement with Ottawa, she said she remains “very hopeful.”
Smith also reiterated that she wants to submit a formal application for a pipeline to the Major Projects Office (MPO) by spring 2026.
Eby: Alberta’s ‘entitlement cannot continue’
In September, the federal government announced its first tranche of nation-building projects to be fast-tracked under the new MPO. Pathways Plus, an Alberta-based carbon capture project that would transport carbon trapped at oil-sand facilities to Cold Lake, Alta., is among the projects that the federal government would like to see further development on. Sources say it’s part of the MOU with Alberta.
Sources also tell CTV News that the federal government believes an increased industrial carbon price will make Pathways Plus more viable.
Asked by Kapelos whether Alberta should be able to profit from its natural resources like B.C., Eby called that province’s frustration to market access “bizarre.”
“The entitlement, the belief that only Alberta should have access to that kind of money from the federal government, and that kind of support, and that kind of hand holding, is an entitlement that cannot continue,” Eby said.
Under former prime minister Justin Trudeau, investment tax credits were introduced that would cover up to 50 per cent of Pathway Plus’ capital costs. Alberta has also offered an additional 12 per cent capital-cost subsidy.
‘Unpleasant surprise’ for coastal First Nations
In a statement on Wednesday, Coastal First Nations denounced the potential pipeline that could be part of the MOU between Alberta and Ottawa, saying they are “incredibly alarmed.”
“We have been very clear that we do not support this proposed project and Coastal First Nations, along with the government of British Columbia, have called on the federal government to uphold the tanker ban,” the statement goes on to say.
“Any discussions around an exemption to the current ban on oil tankers triggers the honour of the Crown and requires our consent.”
Speaking to Kapelos, Eby described the reported details of the pending MOU as an “unpleasant surprise” for coastal First Nations.
“The threat to (LNG) projects is the coastal First Nations saying, if you lift the tanker ban, we will no longer support these projects. We don’t even like them in the first place, and the only reason we’re tolerating them is because of the tanker ban,” Eby said.
First Nations are involved in several liquefied natural gas (LNG) projects on B.C.’s coast, including Ksi Lisims LNG involving the Nisga’a Nation and the Cedar LNG project with the Haisla Nation.
B.C. Liberal MPs, meanwhile, have expressed that a tanker ban change on the northern B.C. coast can’t happen without provincial and First Nations consent.
“The prime minister was pretty clear that projects would need the support of the jurisdictions in which they’re being built. So, I think there’s got to be some conversations with the premier,” former natural resources minister Jonathan Wilkinson said Wednesday on Parliament Hill.
Gurbux Saini, another B.C. Liberal MP, said “there will be no pipeline” unless First Nations and the B.C. government give their consent.
CTV News reached out to the office of Intergovernmental Affairs and One Canadian Economy Minister Dominic LeBlanc to respond to Eby’s remarks, but they said no comment would be provided.
With files from CTV News’ Chief Political Correspondent Vassy Kapelos
