Alberta and Ontario’s premiers have introduced plans for a 3,300 km pipeline to move oil from Western Canada to refineries in southern Ontario. The pipeline is expected to transport 500,000 barrels of oil per day initially, with the potential to scale up to 800,000 barrels per day. Premier Danielle Smith of Alberta and Premier Doug Ford of Ontario revealed the proposed route starting from Hardisty, Alberta, passing through Regina and Winnipeg, and ending in Sarnia, Ontario.
The project is in its early stages, lacking a defined cost or timeline. Last year, the Ontario government initiated a feasibility study to assess the project’s viability and costs, alongside engaging in consultations with Indigenous communities. This pipeline initiative follows an agreement between Ontario, Alberta, and Saskatchewan to explore an energy corridor.
Premier Ford emphasized the urgency of safeguarding Canadian jobs and families, expressing enthusiasm for advancing the Northern Shield Energy Corridor. The envisioned corridor aims to transport oil, natural gas, and other energy resources from Alberta and Saskatchewan to refineries and ports in southern Ontario. The feasibility study commissioned by Ford’s office has incurred $11 million in expenses thus far, with the final cost expected upon completion later this year.
However, Manitoba has declined to participate in the initiative due to the absence of involvement of Indigenous groups from the project’s inception. Premier Wab Kinew of Manitoba highlighted the importance of commencing major projects with Indigenous partnerships rather than consultations post facto.
Ford commended Kinew’s stance and expressed optimism for a resolution, indicating Ontario’s potential ownership of the pipeline and willingness to cover construction costs if necessary. Ford also mentioned a recent meeting with Dawn Farrell, leading the federal Major Projects Office, to discuss the project.
Smith envisions the pipeline eventually facilitating the export of Alberta oil to Europe. She emphasized Alberta’s readiness to collaborate with provincial and federal entities, Indigenous partners, and industry stakeholders to advance the proposed pipeline and energy corridor.
Ontario’s existing oil supply from Western Canada primarily relies on pipelines traversing the U.S., a dependency that the ‘Northern Shield’ aims to mitigate. Data from the Canada Energy Regulator shows that imports from outside Canada constituted a small portion of Ontario’s total crude oil consumption.
Ontario operates three refineries in Sarnia and one in Nanticoke. The recent announcement coincides with Smith’s pursuit of another pipeline project to the West Coast of British Columbia in partnership with federally-owned Trans Mountain Corp. and Calgary-based Pembina Pipeline Corp.
Overall, the collaborative efforts between Alberta and Ontario signal significant strides towards enhancing energy infrastructure and fostering economic growth within Canada.
