Talks have persisted despite opposition from B.C. premier
The Canadian federal government today announced a memorandum of understanding with the government of Alberta, giving the province special exemptions to environmental protections, which would open the door to the construction of a new pipeline to the coast of British Columbia.
The deal lays out how the federal government will facilitate the construction of a pipeline capable of carrying a million barrels of oil per day from northern Alberta to the B.C. coast, with the goal of exporting more Canadian oil to Asian markets.
At a signing ceremony in Calgary on Thursday, Prime Minister Mark Carney and Alberta Premier Danielle Smith announced this deal. It comes with a proposed $16.5 billion carbon capture and storage network plan for Northern Alberta, which BNN Bloomberg reports will be a necessity for any new pipleine project. The deal also comes with the requirement that methane emissions are cut by 75 per cent over the next decade.
B.C. Premier David Eby has announced his opposition to this deal, which would see more tanker traffic on the northern coast of British Columbia, despite an ongoing ban on tankers in the Hecate Strait.
Canadian oil and gas investment is significantly below highs reached more than a decade ago, falling to around $35 billion from a peak of $80 billion in 2014, accoring to CBC.
Some analysts have noted that even with a deal, the current low price of oil will see additional private investment into Canadian energy limited. WTI is currently selling for below $60 (USD) per barrel.
