Ottawa Takes Backseat Role in Alberta-BC Pipeline Dispute

Canada’s energy minister says the federal government will serve as a “constructive participant” in discussions over Alberta’s proposed northern pipeline, placing responsibility on the two provinces to reach agreement on the contentious project.

Tim Hodgson told senators Thursday that Alberta must gain British Columbia’s support and secure backing from Indigenous communities before the pipeline can proceed. He described the matter as one for the provinces to resolve between themselves.

“To build, you need support of the jurisdiction you build through and you need the support of First Nations,” Hodgson said. “The proponent, in this case the province of Alberta, needs to attract that support if they want to build.”

The minister’s positioning has drawn criticism from some, including former Alberta Premier Jason Kenney, who argues the federal government holds constitutional authority over interprovincial infrastructure and should exercise greater leadership on the file.

Alberta plans to submit an application to the federal Major Projects Office by spring 2026 for a bitumen pipeline running through northern British Columbia to the Pacific coast. The province has allocated $14 million for initial development work, though no private company has yet stepped forward to build the project.

Premier Danielle Smith has called the pipeline a “test of whether Canada works as a country.”

The proposal faces significant hurdles. British Columbia Premier David Eby has raised concerns about maintaining the tanker ban along the northern coast. Coastal First Nations have stated outright opposition to any pipeline or tanker traffic in their waters.

Hodgson acknowledged the project remains in early stages, telling senators that “Alberta has some work to do” before a formal proposal can be evaluated.

The Carney government created the Major Projects Office to accelerate infrastructure it deems nationally significant. Officials say projects must demonstrate meaningful Indigenous consultation and alignment with climate objectives before receiving approval.

Dawn Farrell, who leads the Major Projects Office, told a House committee Thursday that her office would need months to assess Alberta’s proposal once submitted.



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.

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