Alberta Premier Danielle Smith and Ontario Premier Doug Ford announced a new all-Canadian pipeline proposal, the Northern Shield Energy Corridor, on Monday during a pancake breakfast at Smith's annual Stampede event in Calgary. The pipeline would carry oil from Hardisty, Alberta, to refineries in Sarnia, Ontario, crossing Saskatchewan, Manitoba, and Ontario entirely on Canadian soil.
Pipeline Details and Capacity
The proposed pipeline would transport 500,000 to 800,000 barrels of oil per day, according to Ford. This capacity could allow Ontario refineries to nearly double their output. While the announcement lacked detailed cost estimates or a construction timeline, Ford emphasized the need to refine Canadian oil domestically, stating, "we need to take action now to protect Canadian jobs and Canadian families."
Strategic Importance
Currently, most Alberta oil destined for Sarnia passes through four U.S. states—North Dakota, Minnesota, Wisconsin, and Michigan—under an arrangement dating back to 1953. This route became precarious in 2020 when Michigan Governor Gretchen Whitmer revoked Enbridge's permit for a portion of the pipeline under the Straits of Mackinac. The ensuing legal battle could ultimately favor Michigan, threatening supply.
At least half of the home heating fuel and gasoline used in Ontario and Quebec comes through Michigan, effectively holding central Canada hostage. Lorne Gunter, the article's author, argues that an all-Canadian pipeline eliminates this vulnerability: "We cannot be held hostage if the oil needed in central Canada passes through an exclusively Canadian pipeline."
Potential for Extension
The Northern Shield Corridor could also be extended to the Maritimes more quickly than starting a new pipeline from Alberta, should Quebec reconsider its opposition to oil development. Ford also suggested that critical minerals mined in Ontario could be shipped west through the corridor, though specifics remain unclear.
Comparison to West Coast Pipeline
Unlike the West Coast pipeline proposed by Smith and Prime Minister Mark Carney last week, which would cross only two provinces, the Northern Shield Corridor traverses four provinces. Gunter notes this should make approval easier, as it avoids multiple jurisdictional hurdles.
