B.C. Premier Rejects Public Funding for Alberta's Proposed Oil Pipeline

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B.C. Premier Rejects Public Funding for Alberta's Proposed Oil Pipeline

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Flag of Canada (© Shutterstock/Tatohra)
Flag of Canada (© Shutterstock/Tatohra)

Alberta Premier Danielle Smith’s call for a new crude oil pipeline to British Columbia’s north coast is facing resistance from B.C. Premier David Eby, who says he won’t support public funding for the project.

“What I don't support is tens of billions of dollars in federal subsidy going to build this new pipeline when we already own a pipeline that empties into British Columbia,” he said. 

Eby indicated that his opposition centers on financial backing, not the concept itself. He pointed to the existing, publicly owned Trans Mountain pipeline, which he said has "significant additional capacity — 200,000 barrels."

"What I don't support is tens of billions of dollars in federal subsidy going to build this new pipeline," Eby told CBC’s chief political correspondent Rosemary Barton, noting there's currently no private company advocating for Smith’s proposal. "There's no money for it."

Smith has actively sought private sector interest for a bitumen pipeline, suggesting Prince Rupert, B.C., as a potential terminus, an alternative to the previously cancelled Northern Gateway project’s proposed Kitimat endpoint. 

She believes the pipeline could generate billions in revenue and is a "Team Canada" initiative. However, Eby emphasized prioritizing "shovel-ready" projects with private funding, listing B.C. energy ventures like LNG Canada in Kitimat, the Ksi Lisims LNG project, major hydroelectric and mining developments, and various wind and solar initiatives. 

He also acknowledged a recent memorandum of understanding with Western premiers on a trade corridor that could include heavy oil.

A significant hurdle for any new northern pipeline remains the federal tanker ban, which prohibits oil tankers exceeding 12,500 metric tons of crude or persistent oil products from stopping or loading in a restricted area covering most of B.C.'s north coast.

Prime Minister Mark Carney stated earlier this month that while he wants to accelerate "nation-building" infrastructure, he prioritizes intergovernmental consensus and "will not impose a project on a province."

Eby said he is open to discussions with Alberta officials if a private proponent comes forward without demanding public money.