Danielle Smith says she's open to shipping oil to Pacific via U.S. Northwest

OTTAWA — Alberta Premier Danielle Smith says she’s keeping in mind that there’s more than one way to get Alberta oil to the Pacific Coast.

Smith said in a year-end interview with National Post that, while her “first preference” would be to build a new West Coast pipeline through northern British Columbia, she’s willing to look across the border if progress stalls.

One possible route to the Pacific Ocean could be through the northwestern U.S. states of Montana, Idaho and either Washington or Oregon.

“Anytime you can get to the West Coast, it opens up markets to get to Asia,” said Smith.

Smith has said that there’s enough demand for Alberta oil in the booming Indo-Pacific region to sustain a new million-barrel-per-day pipeline.

Her comments come just weeks after Saskatchewan-based potash giant Nutrien announced plans to build a $1-billion export terminal at Washington State’s Port of Longview, spurning suitors in B.C.

The Nutrien announcement has been criticized by both B.C. Premier David Eby and federal Transport Minister Steve MacKinnon as a betrayal of the national interest.

Smith stressed, however, that moving heavy oil is different than moving fertilizer.

“Presumably, the potash is going to be transported by rail on existing infrastructure. Building brand new pipeline infrastructure is always complicated,” said Smith.

Smith said that her current focus was on advocating for pipelines to be built along “existing rights of way,” such as the shelved Northern Gateway project to northwestern B.C.

The Alberta premier signed a memorandum of understanding on energy issues with Prime Minister Mark Carney last month that opens the door to a new pipeline and a carve-out of the federal oil tanker ban off the B.C. coast.

Tim McMillan, a Calgary-based partner at Garrison Strategy, says that a hypothetical proponent wouldn’t be starting totally from scratch if they tried to build a pipeline to the Pacific via the U.S. northwest.

McMillan noted that a finished segment of the stalled Keystone XL pipeline already runs through Montana .

“We have a pipe in the ground already, to the border. Whether somebody’s interested in reviving the pre-existing U.S. route to the Gulf Coast or, potentially, taking it straight west out to the (Pacific) coast, that’s an open question,” said McMillan.

McMillan admitted that Washington State and Oregon have historically had tough environmental laws but added the U.S. Pacific Northwest may still be a better option than B.C.

“The U.S. seems to have a much easier time (than Canada) building infrastructure,” said McMillan.

Smith said that she’s staying optimistic for now about deepening Alberta’s energy partnership with B.C., noting that she recently won Eby’s backing for enhancements that would add roughly 360,000 barrels a day to the existing Trans Mountain pipeline system.

“I would say I’m encouraged by expanding the Trans Mountain pipeline, which David Eby has expressed support for, so I’m grateful for that,” said Smith.

She’ll have plenty of work ahead of her in the new year to persuade the B.C. premier on the merits of reversing the federal oil tanker ban and green-lighting a new West Coast pipeline.

Smith has said that she’d like to submit a pipeline proposal to Canada’s new Major Projects Office by May 2026.

National Post rmohamed@postmedia.com

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