Alberta, Ontario announce proposal for new west-east oil pipeline and minerals corridor

Alberta Premier Danielle Smith speaks at a press conference while Ontario Premier Doug Ford looks on in Calgary on Monday, July 7, 2025. Photo by Dean Pilling /Postmedia

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Alberta Premier Danielle Smith and Ontario Premier Doug Ford are promoting a new west-east shipping corridor that would see a pipeline shipping Alberta oil to refineries in southern Ontario.

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The two provincial leaders appeared together in Calgary on Monday to announce the new Northern Shield Energy Corridor proposal, comprising a 3,300-kilometre oil pipeline running from Hardisty, Alta. to Sarnia, Ont.

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Ford said that critical minerals mined in Ontario would also be shipped west through the new energy corridor.

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The Ontario premier said at the announcement that Alberta oil should be refined in Canada.

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Alberta Premier Danielle Smith laughs as Ontario Premier Doug Ford whips off his belt to try out a belt buckle gift after the two signed new memorandums of understanding on energy, trade and interprovincial cooperation at McDougall Centre in Calgary on Monday, July 7, 2025. Photo by Gavin Young/Postmedia

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“If there’s one thing we can all agree on, it’s (that) we need to take action now to protect Canadian jobs and Canadian families,” said Ford.

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Refineries in southern Ontario currently process an average of 386,000 barrels of oil per day. And while the bulk of this oil comes from Alberta, it must pass through the U.S. before reaching Ontario.

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The new Alberta-to-Ontario pipeline would move between 500,000 and 800,000 barrels per day.

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Alberta Premier Danielle Smith and Ontario Premier Doug Ford cook pancakes at the annual Premier’s Stampede Breakfast at McDougall Centre in Calgary on Monday, July 7, 2025. Photo by Gavin Young/Postmedia

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The announcement did not include any details on the pipeline’s cost or a timeline for its construction.

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Heather Exner-Pirot, the director of energy at the Macdonald-Laurier Institute, said the project reflects a prioritization of strategic considerations over economic fundamentals.

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“This (proposal) is largely about domestic energy security and hasn’t really been fleshed out in terms of a business case,” said Exner-Pirot. “We’ll see if it has legs.”

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A previous proposal to build the Energy East west-to-east pipeline from Alberta to New Brunswick refineries was cancelled by its proponent TransCanada Corp. in 2017 in the face of opposition from Quebec and a challenging federal approvals environment.

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A trio of premiers, Alberta Premier Danielle Smith, Saskatchewan Premier Scott Moe and Ontario Premier Doug Ford pose for a photo while working in the serving line at the annual Premier’s Stampede Breakfast at McDougall Centre in Calgary on Monday, July 7, 2025. Photo by Gavin Young/Postmedia

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