Canada’s Prime Minister, Alberta’s Premier Sign Pipeline Deal

Canadian Prime Minister Mark Carney and the premier of the oil-rich province of Alberta have agreed to work toward building a pipeline to the Pacific Coast to diversify Canada’s oil exports beyond the United States—a move that has caused turmoil within Carney’s inner circle, Rob Gillies reported for the Associated Press (AP).

Alberta Premier Danielle Smith said the agreement would enable more than 1 million barrels per day to flow primarily to Asian markets. (Photo: Danielle Smith X)

The memorandum of understanding (MOU) includes a potential adjustment to an oil tanker ban off parts of the British Columbia coast if the pipeline is completed.

Carney’s support for the deal led to the resignation of cabinet minister Steven Guilbeault, a former environment minister and longtime environmentalist who had been serving as minister of culture.

Guilbeault said in a statement that he strongly opposes the agreement, noting the pipeline could cross the Great Bear Rainforest and heighten the risk of a coastal tanker spill.

Still, he emphasized he would remain a Liberal Member of Parliament to maintain party unity.

Carney has set a goal of doubling Canada’s non-U.S. exports over the next decade, arguing that American tariffs are chilling investment.

Alberta Premier Danielle Smith said the agreement would enable more than 1 million barrels per day to flow primarily to Asian markets so that “our province and our country are no longer dependent on just one customer to buy our most valuable resource.”

Carney reiterated that as the U.S. reshapes all its trading relationships, many of Canada’s long-standing strengths—rooted in close ties to America—have become liabilities.

“Over 95% of all our energy exports went to the States. This tight interdependence—once a strength—is now a weakness,” he said.

He added that a pipeline could reduce the price discount on Canadian oil sold to the U.S. “We have created some of the necessary conditions for this to happen, but there is a lot more work to do,” he said.

Northern Alberta holds one of the world’s largest oil reserves, with an estimated 164 billion barrels of proven reserves.