Smith, Carney sign MOU to further pipeline investment

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OTTAWA – With the stroke of a pen, Alberta and the federal government have signed a memorandum of understanding (MOU) to further efforts to build much-needed oil pipelines.

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Premier Mark Carney arrived in Calgary on Thursday for the event, joined by Alberta Premier Danielle Smith at the MacDougall Centre, the provincial government center in the city's downtown.

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“This is truly a great day for Albertans,” Smith told the prime minister before the signing ceremony.

“We have been working for some time to eliminate nine ‘bad laws,’ as I call them, that are impacting our investment climate here, and I am pleased that we have reached an agreement to substantively work to repeal and revise these laws.”

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The agreement is wide-ranging

According to the Government of Alberta, the agreement includes:

• Statement from the Federal Government that Alberta bitumen pipeline to Asian markets co-owned by Indigenous groups is 'project of national interest'
• Working together to promote the “application, approval and construction” of a privately financed and completed pipeline capable of pumping more than a million barrels per day to Asian markets through a “strategic deepwater port.”
• Federal commitment that he will not impose federal restrictions on oil and gas emissions
• Immediate Suspension of Federal Clean Energy Rules and Construction Agreement”thousands of megawatts of artificial intelligence computing power, much of it dedicated to sovereign computing for Canada and its allies.”
• Jointly develop “globally competitive, long-term carbon prices and industry stringency factors by April 1, 2026” for large emitters in the oil, gas and electricity sectors through TIER emissions system
• Launch a methane equivalency agreement by April 1, 2026, which aims to reduce methane emissions by 75% compared to 2014 methane emissions levels.
• Consulting with British Columbia's First Nations, as well as the provincial government, to “ensure that their peoples receive significant economic and financial benefits from the pipeline.”
• Working to reduce regulatory ambiguity

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This new private pipeline will complement the Trans Mountain pipeline, which the Alberta government says will deliver more than 400,000 barrels of oil to Asian markets.

'Nine Bad Laws' Must Be Abolished: Smith

Earlier this year, Smith said she wanted to pass a resolution on the “nine bad laws” before this year's Gray Cup, Carney's deadline to unveil a second round of nation-building projects.

These “nine bad laws” include restrictions on oil and gas emissions, Canada's Oil Tanker Moratorium Act, which prohibits oil tankers from operating along the northern coast of British Columbia, and the federal government's ban on the sale of gasoline and diesel vehicles. which Carney suspended in September.

Smith said she hopes the MOU will move toward eliminating the province's emissions caps and net-zero regulation.

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“I think this will attract an incredible amount of investment and allow us to work together on important nation-building projects,” she said.

“I think this is the first step we will have to take together, but I am very pleased that the Prime Minister has heard our concerns and acted on them.”

MOU will be 'transformative', Carney said

In response, Carney echoed Smith's sentiments, calling the MOU a “multi-faceted agreement” but that there was still a lot of work to be done.

“Essentially this creates an 'energy transition', but what it really does is create the basis for industrial transformation,” Carney said.

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“At the heart of the agreement, of course, is the priority of building a pipeline to Asia that will make Canada stronger, more independent, more resilient and resilient.”

Carney said much of that will be tied to the ongoing $16.5-billion Pathways Alliance Carbon Capture project, which promises to be the largest carbon capture project in the world and significantly reduce the environmental impact of oil from Alberta's oil sands.

“This is all being done in a spirit of collaboration, partnership and trust,” Carney said, referring to Smith's comments about overhauling federal regulations that have hampered energy development in western Canada.

“This will help us move forward more efficiently and effectively.”

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