Carney and Smith Negotiate Pipeline 'Grand Bargain' Despite B.C. Opposition

Prime Minister Mark Carney and Alberta Premier Danielle Smith are negotiating a "grand bargain" to construct a new oilsands pipeline, described as Northern Gateway 2.0, to transport up to one million barrels of crude per day to British Columbia's northwest coast. The proposed agreement would link pipeline approval to aggressive decarbonization, specifically the $16.5-billion Pathways Alliance carbon capture project. In exchange for this commitment, federal officials are considering removing a planned emissions cap and easing the regional ban on oil tanker traffic in B.C. waters.

While the Alberta government has earmarked $14 million for early regulatory work to attract private investors, the project faces fierce opposition in British Columbia. Premier David Eby has condemned the talks, stating he learned of them through the media and describing the repeal of the tanker ban as a "non-starter." Eby and B.C. Jobs Minister Ravi Kahlon argue the project lacks a viable proponent and risks environmental harm and billions of dollars in existing resource investments. Coastal First Nations, including the Heiltsuk Nation, have also demanded that the federal government uphold the tanker ban.

Despite these tensions, Prime Minister Carney has expressed confidence that an agreement will be reached, provided it meets climate and Indigenous participation goals. B.C. Conservative leader John Rustad has criticized the provincial government's opposition, urging them to support projects that benefit Canada. The two governments aim to finalize a memorandum of understanding by the end of November 2025.