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Carney says deadlines under energy deal with Alberta will be missed
WAKEFIELD, QUE. — Prime Minister Mark Carney said his government and the Alberta government will miss the deadline on Wednesday for a carbon pricing agreement and a trilateral agreement for a carbon capture project outlined by a memorandum of understanding (MOU) on energy that was signed last fall.
“No, I don’t think we’re going to announce an agreement tomorrow, but I feel very good about the progress and the state of the discussions,” said Carney, during a press conference in Wakefield, Que., on Tuesday.
Last week, Alberta Premier Danielle Smith told reporters in Houston, Texas that she didn’t expect the April 1 deadlines to be met.
The MOU signed back in November by Carney and Smith, had four key pillars, including a draft cooperation agreement on environmental and impact assessments which was reached in early March and an agreement-in-principle on methane equivalency that was struck last week.
The MOU also affirmed a pipeline to the West Coast as a key priority for the federal government, but approval would depend on the Pathways carbon-capture project moving forward.
The project is worth $16.5 billion and proposes a carbon capture and storage network led by a consortium of major oil sands producers. The project aims to build a 400-kilometre pipeline connecting over 20 facilities in Alberta to a storage hub to achieve net-zero emissions by 2050.
The project has received criticism from First Nations leaders and landowners, who argue they weren’t consulted prior to the MOU signing.
Alberta is expected to submit a proposal for a new West Coast Pipeline to the Major Projects Office by July 1. British Columbia Premier David Eby has said he opposes a new pipeline and argued there is no private proponent willing to come forward.
However, the CEO of Enbridge told Bloomberg News last week that he was open to the company’s involvement in building the new pipeline.
The global price of oil has increased substantially since the war in Iran began in February. The Strait of Hormuz, which is a key shipping lane for 20 per cent of the world’s supply of oil and gas, has remained largely closed.
TC Energy CEO François Poirier renewed his calls for Canada to provide faster approval processes for major projects, noting that in a time of heightened geopolitical risks, countries like Germany, India and Japan have expressed hunger for Canada’s resources.
“That urgency is only growing as energy supply is disrupted around the world—especially at chokepoints like the Strait of Hormuz,” said Poirier, during a speech in front of the Canadian Club of Ottawa on Tuesday. “With safe shores and proximity to markets, Canada can offer a reliable alternative.”
Carney said he had a constructive conversation with Smith on Monday and there is momentum in the discussions.
“We’ll get the right agreement at the right time, but I anticipate soon,” said Carney.
On Tuesday afternoon, West Texas Intermediate oil was trading at US$102 a barrel and Western Canada Select was trading at US$83 a barrel.
National Post
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