Tuesday, September 9, 2025

Alberta, Ontario Ink New Pipeline Plan Poised to Test Ottawa’s Climate Caps

Alberta Premier Danielle Smith and Ontario Premier Doug Ford have signed twin memoranda of understanding that put a single objective front and centre: driving a new pipeline capable of moving Alberta bitumen straight to southern Ontario—and forcing Ottawa to step aside if it blocks the way. 

“The world changed in November,” Smith said, referring to renewed US tariff threats under President Donald Trump. “Canadians understand we’ve got to start acting like a country.”

The first MOU orders officials to map a corridor for pipe, rail, and transmission lines that would link Fort McMurray to Ontario refineries and the steel mills that will supply the project’s plate and pipe.

It also commits both provinces to lobby for repeal or overhaul of the Impact Assessment Act and other federal files Smith says have “harmed” Canada’s energy-sector growth.

Ford pitched the corridor as an industrial policy play, not just a pipeline as new rail lines would “connect Ontario’s Ring of Fire critical-mineral projects to western ports.”

Ontario in turn won Alberta’s pledge to buy Canadian-made vehicles for its public fleet and to study small-modular reactors to power an enlarged grid—concessions that give Ford cover with auto workers and electrification advocates. 

Alberta NDP leader Naheed Nenshi warned that Smith’s flirtation with separatism has already chilled investment. Until the province tackles trucking rules, labour standards and building codes, “these announcements are more about political theatre than real progress,” he said.

Prime Minister Mark Carney, in Calgary for Stampede, hinted the federal large-project list may already include a separate line to BC’s northwest coast and a West Coast export conduit is “highly, highly likely” to appear on cabinet’s shortlist. Smith called that “a positive sentiment” but pressed for immediate action to clear the Ontario route.

If Ottawa refuses, constitutional lawyers expect a reprise of 2024’s Impact Assessment reference case: the Supreme Court struck down sections that overreached provincial jurisdiction, but left enough teeth for cabinet to stall projects it deems climate-inconsistent. That sets up a collision between two premiers promising shovels in the ground and a federal net-zero timetable that caps oil output growth after 2030.


Information for this story was found via Edmonton Journal and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

Related News

Honda to Build Electric Vehicles, Batteries in Ontario in Multibillion-Dollar Deal

Honda Motor Co. (TYO: 7267) is close to finalizing an agreement with the Canadian government...

Monday, April 22, 2024, 08:05:27 AM

Alberta Signs Third Small Modular Nuclear Reactor Deployment Agreement

The Korea Atomic Energy Research Institute (KAERI) and the Government of Alberta have signed a...

Friday, April 21, 2023, 11:54:00 AM

Ontario Is Not Prepared For Its Future Population

Ontario’s population is expected to surge by 30% in the next two decades, but some...

Monday, August 29, 2022, 10:41:00 AM

Ford Says He Doesn’t Want Poilievre’s Job

Ontario’s Conservative premier is ruling out any federal leadership aspirations, distancing himself from turmoil in...

Tuesday, April 22, 2025, 09:56:00 AM

Alberta Courts Japanese Refiners For Heavy Oil Unit

Alberta has opened early-stage talks with Japanese refiners to co-fund a coker that can run...

Tuesday, August 26, 2025, 02:56:00 PM