The premiers of Alberta and Ontario have revealed plans for a new 3,300 km pipeline project aimed at transporting oil from Western Canada to refineries in southern Ontario. This pipeline is anticipated to carry around 500,000 barrels of oil per day initially, with potential to expand to 800,000 barrels per day. The proposed route, starting from Hardisty, Alta., would pass through Regina and Winnipeg before reaching Sarnia, Ont.
Both Alberta Premier Danielle Smith and Ontario Premier Doug Ford made the joint announcement in Calgary, emphasizing the importance of taking action promptly to safeguard Canadian jobs and families. The project, known as the Northern Shield Energy Corridor, is still in its early stages, with no set cost or timeline established yet. Last autumn, the Ontario government initiated a feasibility study to evaluate the project’s viability and associated expenses, along with starting consultations with Indigenous communities.
The vision for the corridor is to transport oil, natural gas, and other energy resources from Alberta and Saskatchewan to refineries and ports in southern Ontario. Ford’s office confirmed that the ongoing feasibility study has incurred costs of $11 million to date, with final costs expected to be determined by the end of the year upon completion.
While Manitoba has declined to participate in the initiative due to Indigenous groups not being involved from the onset, Premier Wab Kinew expressed Manitoba’s commitment to initiating large-scale projects in collaboration with Indigenous partners. The province remains focused on inclusive partnerships for sustainable economic development.
Ford expressed optimism for a resolution with Manitoba and suggested that the Ontario government could potentially own and finance the pipeline’s construction if necessary. He emphasized exploring all available options for what he views as a beneficial investment opportunity. Discussions have been ongoing, with Ford meeting with Dawn Farrell, leading the federal government’s Major Projects Office, to discuss the project.
The proposed pipeline project holds potential for enabling Alberta to export oil to Europe in the future. Smith highlighted Alberta’s readiness to collaborate with provincial and federal entities, Indigenous groups, and industry stakeholders to advance this significant infrastructure development. Ontario’s current reliance on Western Canadian oil, predominantly transported through U.S. pipelines, underscores the strategic importance of the ‘Northern Shield’ project.
Ontario’s refineries in Sarnia and Nanticoke primarily rely on Western Canadian oil, with a relatively low percentage of crude oil imports from non-Canadian sources. The announcement of this pipeline project follows Smith’s recent advancement of a separate pipeline initiative to the West Coast in collaboration with the Trans Mountain Corp. and Pembina Pipeline Corp.
In conclusion, the proposed pipeline project signifies a strategic move towards enhancing energy infrastructure and fostering economic growth between Western Canada and Ontario.