Playing pipeline politics: B.C. left out of rumoured Alberta MOU talks

If Alberta and the federal government are close to signing a memorandum of understanding about a new oil pipeline across northern British Columbia, it is news to B.C.’s premier.

Despite the pipeline needing to cross the entire province, and requiring an end to a longstanding oil tanker ban on the north coast, B.C. Premier David Eby is being left out of those discussions.

“These talks about eliminating the ban on oil tankers off our coast have taken place without anyone from British Columbia at the table,” Eby said in a Thursday statement. “Like many British Columbians, I learned of these talks through a news article.”

Several news outlets have reported on the MOU talks, citing unnamed sources.

At this stage, it is unclear how close Alberta and the federal government are to an agreement — or exactly what it would include. There is currently a ban in place on large oil tankers travelling through the north coast, so a pipeline would require the ban to end or an exemption to be issued.

George Hoberg, a professor emeritus at the University of British Columbia’s School of Public Policy and Global Affairs, says that in the current economic and geopolitical climate, this pipeline talk must be taken seriously, despite the lack of a concrete project proposal.

He said that while these types of negotiations are unusual before a route and terminus are identified, a proponent is found, and a project proposal is introduced, things changed with U.S. President Donald Trump’s re-election and the sudden threat of tariffs. Since then, “dramatic changes” in people’s sense of economic security have made finding new trade partners a priority.

Hoberg, who has written extensively on the politics of pipelines, also said this could be a way to get Alberta to back federal climate change policies, a past strategy in pipeline negotiations.

But Prime Minister Mark Carney and Alberta Premier Danielle Smith will still need First Nations support for the project to have any likelihood of success, he said. In the past, significant amounts of money were offered to First Nations to reduce opposition.

“I assume that will happen again in this effort, but whether or not the coastal First Nations will go along with that is a separate question.”

B.C. Conservatives accused of secret meetings with Alberta

Earlier in the week, Eby accused B.C. Conservative Leader John Rustad of secretly working with Alberta to push the pipeline proposal.

Rustad leaned in to this on Thursday, with the caveat that those discussions took place months ago.

“Of course, I’ve been talking with Alberta,” Rustad said. “I’ve talked to Saskatchewan about this. I’ve talked with all kinds of people about this.”

But Rustad said that he has not spoken with Smith recently, and has not been briefed on any talks regarding a memorandum of understanding with the federal government

Rustad said Smith told him she does not want to endanger negotiations with people in the B.C. government.

“She didn’t want to poke them in the eye, because she did want to be able to work with them on trying to move these things forward,” he said.

Opposition digs in

So far, First Nations, environmental groups, and Eby are all cementing their opposition.

The Coastal First Nations, a group of six allied nations, reiterated this on Wednesday.

Marilyn Slett, Heiltsuk chief and Coastal First Nations president, said any changes to the tanker ban would require consent, and she is tired of hearing about discussions regarding the nations’ traditional territories through news reports.

“This approach is only building mistrust, and Canada should commit to talking with us directly instead of deliberately sidestepping our communities,” she said in a written statement.

Eby argues that focusing on a controversial future project endangers First Nations’ support for current, viable and in-progress projects, such as critical minerals mines, liquefied natural gas export terminals and energy projects.

“Real jobs and prosperity are put at risk from this extremely early stage and unfunded proposal of a heavy oil pipeline,” he said.

On Nov. 5, he put opposition to the tanker ban repeal in writing, signing the North Coast Protection Declaration with First Nations leaders.

Adrian Dix, B.C.’s energy minister, says the Trans Mountain pipeline, newly built and pumping Albertan oil to Vancouver, is still not operating at full capacity, and a few lower-cost changes could increase the flow of oil, as opposed to a new line, which would require billions of dollars in public funding.

Dix said Trans Mountain is operating at about 78 to 88 per cent capacity because fully-loaded Aframax tankers will hit bottom in the Burrard Inlet at the current depth. Plans are being developed to dredge the inlet.

And he said capacity could be expanded even further, “at relatively minimal cost,” if compression improvements are made to the pipeline itself. On the other hand, he argues nobody wants to build a new “massively subsidized” pipeline.

“It doesn’t make sense,” Dix said. “It doesn’t make sense on the economy. It doesn’t make sense on the environment. It doesn’t make sense on communities. It puts other projects at risk. And it’s absolutely not needed.”