‘We need more opportunities’: Alberta urges Ottawa to follow through on pipelines

Mixed messages are coming out of Ottawa after the former environment minister questions the need for new pipelines. CTV News Edmonton's Chelan Skulski reports.

Mixed messages from Ottawa are irking Albertans who want options for distributing its chief resource.

A day after Prime Minister Mark Carney expressed he was open to new pipeline construction, the recent federal environment minister said Canada should make full use of its existing infrastructure for transporting energy products before building more.

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Speaking to reporters ahead of the first meeting of Carney’s new cabinet, Steven Guilbeault claimed less than half of the Trans Mountain pipeline’s capacity is being used.

“Before we start talking about building an entire new pipeline, maybe we should maximize the use of existing infrastructure,” Guilbeault told reporters on Wednesday.

“And the Canadian Energy Regulator, as well as the International Energy Agency, are telling us that by 2028-2029, demand for oil will peak globally, and it will also peak in Canada.”

The actual utilization rate of the Trans Mountain pipeline is contested. According to data from the Canada Energy Regulator, utilization appeared to be up around 76 per cent as of December 2024.

Guilbeault, who now heads the federal culture portfolio, served as environment minister under former PM Justin Trudeau, who Carney replaced this year.

Guilbeault’s comments on pipelines came a day after Carney indicated in an interview with CTV News that he’s open to building more pipelines if there is consensus across the country in favour of it.

Carney also opened the door to making changes to the emissions cap on oil and gas production and to the federal legislation for reviewing projects, the Impact Assessment Act.

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Alberta Energy Minister Brian Jean said Wednesday he wants to see Carney and the Liberal government forge ahead on the promise to develop more pipelines.

“We need more pipelines. We need more opportunities,” Jean told CTV News Edmonton. “We need to be less U.S.-dependent and make sure we find international markets, whether it’s Asia -- in particular, Korea and Japan, who could significantly change their value proposition going forward in the geopolitical situation.

“If we were able to complete some pipelines and some energy transportation to their shores, it would be amazing for them, and I see also for Europe.”

Jean wants to see the proposed Northern Gateway pipeline approved immediately. It would take oil from Alberta to Kitimat on northern British Columbia’s coast.

A statement from Alberta Premier Danielle Smith said she is “glad” Carney “supports building a pipeline” but added recent Liberal actions, including the appointment of Julie Dabrusin as the new environment minister and Wednesday’s comments by Guilbeault, “are not helpful in resetting the relationship between Ottawa and Alberta.”

“I hope the Prime Minister was sincere in his comments made ... and that he disavows the comments made by Minister Steven Guilbeault,” Smith said in the statement.

Richard Masson, an executive fellow at the University of Calgary School of Public Policy and the former chief executive officer of the Alberta Petroleum Marketing Commission, says he is encouraged by Carney’s comments but questions how the country reaches consensus.

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“Let’s pick a timeline, let’s pick a target, and let’s work together to achieve that and do it in an environmentally responsible way, because if we’re sniping at each other, we’re not going to attract the investment to grow our production and the jobs and economic benefits of that,” Masson told CTV News Edmonton on Wednesday.

On his way out of the cabinet meeting, Buckley Belanger, the newly appointed secretary of state for rural development, dismissed suggestions of mixed signals.

“We’re all united on that front and I think it’s fantastic for the oil and gas sector. Don’t forget, folks, we’re third worldwide in terms of production of oil and gas,” Buckley told reporters.

“We want to build on that success. So clearly, I think Alberta and Saskatchewan have a great opportunity to build on their ... expertise in oil and gas and join the rest of Canada in strengthening our trade worldwide. Simple as that.”

Carney said during the election campaign he would keep the emissions cap in place, though Smith said Carney struck a different tone in a meeting with her around the same time.

Canada’s oil and gas sector has indicated no desire to build new pipelines under the current regulatory environment. Following the election, 38 Canadian oil and gas CEOs wrote to Carney calling on him to repeal the assessment law and scrap the emissions cap regulations.

Pipelines are expected to be on Smith’s agenda when she meets with Carney on June 2.

With files from CTV News Edmonton’s Chelan Skulski and The Canadian Press