Carney says ‘constructive’ talks ongoing with Alberta about oil pipeline

Prime Minister Mark Carney on Sunday addressed speculation about whether an agreement is close for a new pipeline between Alberta and B.C.'s northern coast.

Prime Minister Mark Carney says discussions between the federal and Alberta governments on a potential oil pipeline to British Columbia’s northern coast are ongoing, addressing speculation this week that a framework agreement was close.

In comments made during his trip to the G20 summit in South Africa, Carney spoke about the talks for the first time.

“So the discussion around oil pipelines, for example, and this is the language of Premier Smith of a grand bargain, is absolutely related to other aspects of policy in Alberta, if it were a pipeline from Alberta, as well as investment in carbon capture and storage, so that these are effectively carbonized, would decarbonize barrels,” Carney said.

Speculation of an oil pipeline from Alberta has been ongoing for weeks, despite one not being announced in both the first and second list of major projects the government is submitting for fast-track approval.

The Alberta government said in October it planned to apply to build the pipeline and would submit the application to Ottawa next spring.

When Carney announced his second projects list last week, Smith said she was on board with the projects but added negotiations with Ottawa about such a pipeline were ongoing.

The prime minister, when asked at the time if he was having discussions about a separate “grand bargain” with Alberta, called it a “memorandum of understanding” and said that discussions were going well.

He echoed those comments Sunday.