Expect Alberta to file vague plan for oil pipeline to B.C. by July 1: observers

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Her 2025 book outlines the battles over B.C.’s last two oil pipeline proposals, of which only the Trans Mountain expansion went ahead, and only after it was purchased by the federal government.

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The cost for that project, completed in 2024 ballooned to $34 billion, more than six times its original price.

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Bloomberg has reported that Rajan Sawhney, Alberta’s Indigenous relations minister, said the province will propose a “general corridor” for the project, with a specific route to be determined later through consultations with First Nations.

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Edward Kallio, an executive adviser with Calgary-based energy analytics firm Incorrys, said he also doesn’t expect a submission will include a project proponent or oil-producer backing.

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Kallio said he expects the Alberta government will be seeking federal government assistance to push through the corridor idea, including buy-in from First Nations.

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In order for a pipeline project proponent — such as TC Energy or Enbridge — to take on a project such as this, they would have to know there was an approved route, First Nations buy-in and a clear regulatory pathway, said Kallio.

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“You have to de-risk this,” said Kallio.

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But he added it’s unclear to him how far the federal government is willing to go to support this project.

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Kallio also noted the agreement between Alberta and Ottawa on the oil pipeline is tied to a massive carbon capture project in Alberta. He added that Jon McKenzie, the CEO of Cenovus Energy, one of Canada’s biggest oil producers, has said the push for the $20-billion-or-more carbon capture project and carbon tax in exchange for the oil pipeline to the B.C. Coast is uneconomical.

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If Alberta were to push for a northern route, First Nations on the northern and central B.C. coast have already said that no offer of equity or ownership will change their opposition to an oil pipeline to the northern coast. The Coastal First Nations include the Haida, Gitga’at, Gitxaała, Kitasoo Xai’xais, Heiltsuk and Lax Kw’alaams.

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“There is no technology that can clean up an oil spill at sea, and one spill could destroy our way of life,” said Marilyn Slett, president of the Coastal First Nations-Great Bear Initiative and the elected chief of the Heiltsuk Nation.

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Officials with Coastal First Nations said Slett would not be commenting further until an announcement was made.

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Some First Nations who were opposed to Enbridge’s Northern Gateway oil pipeline project through northern B.C. have not outright said they are against a new project, but have noted they would have to see a route and details before deciding.

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