Canada and British Columbia announced a broad agreement that would preserve the oil tanker moratorium on the north coast and ensure B.C. would see economic benefits if Alberta’s proposed pipeline project goes forward.
Prime Minister Mark Carney unveiled the multibillion-dollar agreement in Vancouver Thursday alongside Premier David Eby.
“This agreement is comprehensive, it’s ambitious and it will help transform the Canadian economy,” said Carney.
It came hours before Alberta Premier Danielle Smith was set to provide details of her proposal for a pipeline to B.C.’s coast.
Carney declined to comment on the specifics of Alberta’s pipeline proposal. He was scheduled to join Smith in Calgary Thursday evening for a news conference.
The deal acknowledges that, while B.C. does not seek a new pipeline, the province would participate in good faith with necessary routing and permitting discussions, as long as Ottawa follows through commitments to maintain the tanker ban and engage meaningfully with First Nations.
The federal moratorium on oil tankers has been in place since 2019, covering the area from the Alaska border down to a point on British Columbia’s mainland across from the northern tip of Vancouver Island, including Haida Gwaii.
While a route has not been confirmed for the proposed pipeline, Smith has previously called on Ottawa to repeal or partially lift the tanker ban.
Canada and B.C. would also negotiate a framework for the province to get a share in the profits from the project. That could include an annual royalty payment to B.C. by the pipeline operator, and federal funding for the province and First Nations to respond to environmental risks.
The federal government also agrees to negotiate compensation for B.C. related to the updated industrial carbon pricing benchmark.
That’s after Ottawa and Alberta came to an agreement in May on an industrial carbon pricing framework that revises the federal benchmark carbon price.
Eby pushed back on the idea that the deal seeks to appease the province as Alberta and Ottawa press forward with a pipeline proposal that B.C. does not support.
“This is a B.C. agreement about B.C. projects,” said Eby.
The deal, called the Canada-British Columbia Cooperative Prosperity Agreement, includes commitments related to major B.C. projects, infrastructure, childcare and skilled trades training.
A major focus would be LNG expansion.
“The federal government will work with private-sector proponents, communities and First Nations to accelerate the permitting, the financing and the construction of major LNG projects in B.C.,” said Carney.
Those projects include the proposed LNG Canada Phase 2 expansion, Ksi Lisims LNG, Cedar LNG, Woodfibre LNG and the Prince Rupert Gas Transmission pipeline project.
Carney said the federal government would provide $3.5 billion for Phases 1 and 2 of the North Coast Transmission Line, which would power LNG expansion and other planned major projects in B.C.’s north.
Other initial federal investments include $500 million for the Red Chris mine expansion in northwestern B.C.
Ottawa is also committing up to $3 billion toward the cost of replacing Vancouver’s aging George Massey Tunnel.
The agreement also includes commitments toward further support for B.C.’s steel and softwood lumber industries before the end of this year.
