The premiers of Alberta and Ontario have revealed plans for a new 3,300 km pipeline to carry oil from Western Canada to refineries in southern Ontario. The proposed pipeline is expected to transport approximately 500,000 barrels of oil per day initially, with potential for expansion to 800,000 barrels per day. The route would start in Hardisty, Alta., pass near Regina and Winnipeg, and end in Sarnia, Ont.
The project is still in its early stages, with no set cost or timeline established yet. Last autumn, the Ontario government initiated a feasibility study to assess the project’s viability and associated expenses. Additionally, consultations with Indigenous communities have begun as part of the planning process.
This pipeline initiative follows an agreement among Ontario, Alberta, and Saskatchewan to explore an energy corridor aimed at transporting oil, natural gas, and other energy products from Alberta and Saskatchewan to southern Ontario’s refineries and ports.
Premier Doug Ford emphasized the importance of taking swift action to safeguard Canadian jobs and families. The vision for the corridor aligns with the goal of enhancing energy transportation across provinces.
Manitoba has declined to participate in the project due to concerns about the lack of initial involvement of Indigenous groups. Premier Wab Kinew emphasized the need for projects to prioritize Indigenous partnerships from the outset.
Ford expressed optimism about resolving the issue with Manitoba and suggested that the Ontario government could potentially take ownership of the pipeline and cover construction costs if necessary.
The pipeline could open up opportunities for exporting Alberta oil to Europe, according to Premier Danielle Smith. The proposed pipeline aims to streamline energy transportation within Canada and reduce reliance on U.S. pipelines for oil supply to Ontario.
Ontario currently sources a significant portion of its oil from Western Canada, primarily through U.S. pipelines. The ‘Northern Shield’ project aims to establish a direct route from Western Canada to Ontario’s refineries.
Smith recently advanced a separate pipeline project to the West Coast, proposing an oil pipeline to the southwest coast of British Columbia in collaboration with federally-owned Trans Mountain Corp. and Calgary-based Pembina Pipeline Corp. as the private proponent.