Alberta Premier Danielle Smith and Ontario Premier Doug Ford have proposed a new oil pipeline that would transport 500,000 barrels per day from Western to Central Canada, echoing the cancelled Energy East project. The pipeline would connect crude oil production in the prairies with domestic refineries in Ontario.
Pipeline details and route
The proposed 3,300-kilometre route, dubbed the Northern Shield energy corridor, would stretch from Hardisty, Alberta, to Sarnia, Ontario. It would pass near Regina, Winnipeg, and around the Great Lakes near Toronto. The pipeline has an initial capacity of 500,000 barrels per day, with potential expansion to 800,000 barrels per day.
Premiers' statements
“Pipelines have gone from impossible to a national imperative. The Alberta oilsands have gone from a target to a national treasure, and we’re launching the greatest expansion of oil and gas infrastructure and production in decades,” said Smith. Ford added, “The Northern Shield energy corridor would move an estimated half a million barrels of oil per day, with the ability to expand to 800,000 barrels per day, bringing new capacity to Ontario refineries and delivering critical redundancy for existing pipelines, while creating good paying jobs for Canadian workers.”
Comparison with Energy East
The proposal resembles TransCanada Corp.'s (now TC Energy Corp.) Energy East project, a $15.7-billion pipeline that would have run from Alberta to Irving Oil Ltd.'s refinery in Saint John, New Brunswick. TransCanada cancelled Energy East after facing opposition in Quebec and a regulatory decision to consider upstream and downstream emissions.
Cost and public opinion
Ontario is conducting a cost estimate, expected by the end of the year, according to Ford. Smith noted a shift in public opinion: “Look at how Canada’s public opinion has changed. It’s done a 180 on energy.”
Impact and next steps
The pipeline aims to provide critical redundancy for existing pipelines and create jobs, while boosting domestic refining capacity in Ontario. Further details are expected as the cost estimate progresses.
