Ottawa is leaning toward a southern British Columbia pipeline route to Vancouver for a new oil conduit that could carry an additional one million barrels per day to Asian markets, bypassing Alberta’s preferred northern path to Prince Rupert, according to two federal sources.
The southern route, potentially running alongside the existing Trans Mountain pipeline or on a separate path, is seen as facing fewer environmental and Indigenous opposition hurdles compared to the northern option. A new terminal for tanker loading would be required in Vancouver, where the port authority is already planning to dredge the Second Narrows waterway at Burrard Inlet to accommodate fully loaded Aframax-class oil tankers at the Westridge Marine Terminal. However, constructing beside an operational pipeline poses significant engineering and safety challenges, an Alberta source noted.
Alberta Premier Danielle Smith has championed the northern route to Prince Rupert, which offers a 36-hour shorter sailing time to Shanghai and access to North America’s deepest port, ideal for the massive crude carriers that can haul two million barrels of heavy oil sands crude. Despite her preference, Smith has not ruled out a southern path, though she remains concerned about capacity constraints at Vancouver’s port.
Sponsored · Selkirk Copper Mines
The pipeline plan stems from a November memorandum of understanding between Prime Minister Mark Carney and Smith, aimed at unlocking Alberta’s energy sector and diversifying export markets amid U.S. trade tensions. While the MOU did not specify a route, Alberta is set to propose the northern path to Ottawa’s Major Projects Office this summer, expecting a designation of national importance by fall. Ottawa, however, will evaluate the proposal against criteria including economic benefits, Indigenous interests, and climate goals under the Building Canada Act.
Progress on related MOU provisions shows mixed results. Agreements on streamlining environmental assessments and cutting methane emissions by 75% from 2014 levels by 2035 are secured, but carbon pricing—moving from $20 to $130 per tonne—and the Pathways carbon storage project in the oil sands remain unresolved despite near-daily negotiations.
Demand for pipeline capacity is intensifying as Calgary-based giants like Cenovus and Suncor report production records and plan further expansions, fueled by high oil prices and global energy security concerns. Cenovus CEO Jon McKenzie emphasized the urgent need for policies to support growth, noting the world’s demand for Canadian barrels amid disrupted global supplies. The Pathways project, backed by six major energy firms, could decarbonize the oil sands, aligning with climate goals if carbon pricing disputes are settled.
Information for this story was found via the sources and companies 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.
3 Responses
Canada can not let the Indians dictate how the resources required to keep the country afloat financially are transported to our customers. The pipeline to Prince Rupert makes much more sense logistically, environmentally, and financially. The shipping route from Prince Rupert is simple — leave the port and you are right on the Pacific, unlike Vancouver which is a busy port with a tortuous path through the gulf islands before reaching the open Pacific. The Indians are participating very nicely in Canada’s economy and will derive benefits from practical solutions.
The federal government must stop kowtowing to the Indians and get on with running the country for all Canadians.
The Supreme Court rulings have already stated First Nations must be consulted and not just given a notice. The Federal Government under Harper discovered these facts on a proposed pipeline to Prince Rupert. There is not a current proposal from the private sector for this project. Fine to have an opinion but be informed.
lol what is this 1832? The Indigenous people were here well before your sorry a**. You’ll do what the Indigenous people say you’ll do, and we all know that’s how it will go or things will get blocked and it won’t get done. I’d fix your attitude quickly if you want this to move along.