Alberta Premier Danielle Smith says industry and Albertans are growing 'impatient' to finalize the months-old energy deal she struck with Prime Minister Mark Carney, expressing hope that it can be completed within 'days.'
Constructive Conversations Since November
Smith made her comments before pooled media covering the start of a meeting on Friday between the two leaders in Carney's office. The premier noted that they have had 'constructive conversations' since signing the document last November.
'Still have a few things to work out and I hope that we can get to the finish line on signing that memorandum of understanding. I know industry is getting a bit impatient, Albertans are getting a little bit impatient,' Smith said.
'And if we're going to move forward with that MOU, I hope it happens in the next number of days because I think in Alberta there does need to be a demonstration that Canada can work.'
Missed Deadline on Carbon Pricing
The meeting comes more than a month after a deadline passed to reach a deal on industrial carbon pricing, a key component of the pact signed last November. Under that agreement, the Carney Liberals committed not to implement an emissions cap on oil and gas and exempted Alberta from federal clean energy regulations. In exchange, Smith agreed to increase Alberta's industrial carbon price to a minimum effective credit price of $130 per tonne, up from the current $95 per tonne.
The timeline for reaching that price level and deciding on a long-term structure for the program, handled by senior officials in both governments, has emerged as a sticking point in negotiations.
Industry Concerns Over Competitiveness
Leaders in the oil and gas sector have emphasized that charging an industrial carbon price undermines Canada's competitiveness at a time when the country seeks to diversify its market access. This includes a group of five major oilsands companies that have pushed for increased oil production through a massive multi-billion-dollar carbon capture and storage project. The deal between Alberta and Ottawa links this project to the construction of a new pipeline.
A new million-barrel-a-day pipeline carrying crude oil from Alberta to British Columbia's northwest coast is what Smith seeks from the deal. Her United Conservative Party government has committed to submitting a proposal to the federal Major Projects Office for consideration.
Separatist Movement Swells
The developments come as a separatist movement grows within Alberta, with members recently submitting signatures to Elections Alberta to trigger a referendum on the question.
'We have more to do, which is why we're sitting down today,' Carney said of the Alberta-Ottawa relationship as he met the premier on Friday.
Smith is in Ottawa to later appear as a keynote speaker at the annual Canada Strong and Free Network conference.
