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Home»Sarnia»New Oil Pipeline Proposal Links Alberta and Ontario
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Sarnia

New Oil Pipeline Proposal Links Alberta and Ontario

July 6, 20264 Mins Read
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New Oil Pipeline Proposal Links Alberta and Ontario
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The premiers of Alberta and Ontario introduced a plan for a new 3,300 km pipeline that would carry oil from Western Canada to refineries in southern Ontario.

This pipeline aims to transport around 500,000 barrels of oil each day, with a potential increase up to 800,000 barrels daily.

Alberta Premier Danielle Smith and Ontario Premier Doug Ford made the announcement on Monday in Calgary, revealing a proposed route starting at Hardisty, Alta., passing near Regina and Winnipeg before arriving in Sarnia, Ont.

The project is still very early in development, so there’s no estimate on cost or timeline yet.

Last fall, the Ontario government kicked off a feasibility study to explore the project further while also considering potential costs. The provincial government is beginning talks with Indigenous communities as well.

This pipeline proposal comes after an earlier agreement between Ontario, Alberta, and Saskatchewan aimed at creating an energy corridor.

“We need to take action now to protect Canadian jobs and Canadian families. We need to move quicker, faster, immediate. That is why I’m thrilled to be here today making progress on our agreement from last year as we unveil the route for the Northern Shield Energy Corridor,” said Ford.

The vision for this corridor includes transporting oil, natural gas, and other energy products from Alberta and Saskatchewan down to refineries and ports in southern Ontario.

Ford’s office shared with the that the feasibility study has cost $11 million so far. The total cost will be finalized once it’s done, which should happen by year-end.

The Manitoba government has opted out of joining this initiative due to concerns about Indigenous involvement from the start.

Premier Wab Kinew stated that Manitoba will focus on large-scale projects that prioritize Indigenous partnership rather than consultation afterward.

WATCH | Smith, Ford propose path for oil pipeline from Alberta to Ontario:

Smith, Ford propose path for oil pipeline from Alberta-Ontario

Alberta and Ontario’s premiers have presented their proposed route for a 3,300-kilometre pipeline designed to carry oil from Western Canada down south to refineries in Ontario. The Northern Shield energy corridor would kick off at Hardisty, Alta., go through Regina and Winnipeg before reaching Sarnia. However, details like estimated costs or timelines remain unclear along with whether private investors will join in.

On Monday, Ford complimented Kinew while expressing optimism about finding common ground.

“He has to consult a little more with his folks in Manitoba but we’ll work something out and I’m 100 per cent behind putting a pipeline up to Churchill,” he said.

Ford mentioned that if necessary, the Ontario government could take ownership of the pipeline and cover construction costs.

“Let’s take a look at all options,” he said. “I think it’s a great investment.”

This past Sunday, Ford noted having met with Dawn Farrell who heads up the federal government’s Major Projects Office regarding this project.

The pipeline could eventually enable Alberta’s oil exports heading toward Europe , according to Smith.

“Alberta is ready to work with our provincial and federal counterparts , Indigenous partners , and industry leaders to advance this proposed pipeline and energy corridor ,” said Smith.

Ontario already relies heavily on Western Canada for its oil needs. However , they currently use pipelines running through U. S., which wouldn’t be needed for ‘Northern Shield’.

Imports outside Canada made up only about 15 percent of total crude consumed by refineries in Ontario between 2020-2023 , accordingto Canada Energy Regulator.

Ontario hosts three refineries located in Sarnia alongwith one based Nanticoke.

Monday’s announcement follows Smith’s push ahead last week regarding another separatepipelineproject towards West Coast.

Alberta formally suggested constructing anoilpipelineto southwest British Columbia togetherwith federally-owned Trans Mountain Corp. and Calgary-based Pembina Pipeline Corp. as private proponent.

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