New Alberta-B.C. pipeline proposition by Enbridge hinges on favorable circumstances.
GRANDE PRAIRIE, ALBERTA - Alberta Premier Danielle Smith has revealed her confidence that one or more private pipeline companies will unveil plans to transport oilsands crude to the Port of Prince Rupert, British Columbia, and challenge the federal government's new policy to expedite projects deemed critical for Canada. However, these companies are maintaining silence on their plans for proposing a new West Coast pipeline anytime soon.
Smith addressed reporters on Tuesday, affirming that they are actively engaged in discussions with pipeline operators, expecting either one company or a collaboration to announce their intentions in the near future.
Enbridge Inc., the leading Canadian crude oil shipper with an extensive cross-border pipeline network, is a potential candidate for this new project. The company, which previously abandoned the Northern Gateway pipeline project for the B.C. port of Kitimat, south of Prince Rupert, expressed interest in market-diversifying projects if there is sufficient demand from customers. However, they stressed that this would necessitate "real provincial and federal legislative change" regarding climate policy, regulatory timeliness, and Indigenous participation.
Enbridge stated, "We will be there to build what is needed for our shippers, for Alberta, and for Canada - that's our job, our mission as a company - but only when the conditions make sense and the right framework is in place."
South Bow Corporation, currently lacking infrastructure in British Columbia, would only say they "carefully evaluate all opportunities, especially those that complement our current assets and strengthen our existing corridor." South Bow's Keystone system serves U.S. Midwest and Gulf Coast refineries.
The CEO of Trans Mountain Corporation, a publicly-owned pipeline operator, earlier revealed that his company had discussed the possibility of spearheading a new pipeline with Premier Smith. However, optimizing existing infrastructure remains a priority over building something new at this time. Trans Mountain is the sole provider for Alberta producers to meaningfully access Asia-Pacific markets, as their pipeline flows to the British Columbia Lower Mainland.
The proposed pipeline, slated to ship one million barrels of oil daily, would serve as the anchor tenant on a corridor housing additional infrastructure. However, Richard Masson, an executive fellow at the University of Calgary's School of Public Policy, questioned whether Smith can successfully entice a private company to commit, stating, "She's pushing to be seen as doing something and to try and take advantage of the mood in the country."
Enbridge faces the challenge of how a potential new West Coast system may impact the economics of their Mainline system, which is the largest-single conduit for Canadian crude flowing by pipeline to the United States. Any new pipeline would likely require decades-long commitments from customers to pay to use it, but the Mainline is more flexible. If customers are already locked into paying to use a potential West Coast system, there is more incentive to move crude through that pipeline before the Mainline, potentially hurting Enbridge's bottom line.
South Bow Corporation, spun off last year from TC Energy, may struggle with the capacity to undertake such a massive project, while Alberta's other energy infrastructure players, like Keyera Corp. and Pembina Pipeline Corp., are more focused on natural gas and less likely to engage in complex crude oil pipeline projects outside their core expertise.
In addition, the federal government's tanker ban on the West Coast remains a significant hurdle for new oil pipeline projects, as Northern Gateway discovered during the heated debate. First Nations and environmental organizations fiercely opposed oil tankers sailing along the northern, island-dotted British Columbia coast, raising concerns about potential ecological damage from spills. Smith and industry players have called for the ban to be lifted, but the Liberal government has shown no signs of compliance.
Anna Barford, oceans campaigner with Stand.Earth in Vancouver, reiterated, "This is simply not an area where we can have a pipeline. When Alberta says pipelines, for us that means tankers."
This report by The Canadian Press was first published on June 25, 2025.
Companies mentioned in this story: (TSX: ENB) (TSX: SOBO) (TSX: PPL) (TSX: KEY)
- In Toronto, the CEO of Trans Mountain Corporation admitted discussing the possibility of spearheading a new pipeline with Alberta Premier Danielle Smith, but emphasized that optimizing existing infrastructure remains a priority over building something new.
- Enbridge Inc., a potential candidate for the new West Coast pipeline project, has outlined that real changes in government policy, regulatory timeliness, and Indigenous participation are necessary for their involvement.
- South Bow Corporation, based in Canada, expressed interest in undertaking large-scale projects that strengthen their existing corridor, but the tanker ban on the West Coast and the complexity of crude oil pipeline projects may pose challenges for their participation in the new pipeline.
