Calgary & Alberta Economy

[Chowda7]

Carney signs major energy agreement with Alberta, laying out conditions for new oil pipeline

Prime Minister Mark Carney and Alberta Premier Danielle Smith signed a major new energy co-operation agreement on Thursday, outlining the conditions that need to be met for a new oil pipeline to the Pacific to proceed.

www.ctvnews.ca

 

[Mountain Man]

Now all we need is someone to actually propose a pipeline to get this going!

 

[trtcttc]

The language is much stronger than I thought.

• Clean electricity regs and O&G emissions cap, gone
• Commitment to export the oil that reach the port, with no caveat for indigenous or BC agreement
• Only consultation and financial ownership/benefit with BC/FN, no mention of agreement or anything resembling a veto
• Commitment to use C-5 (not the same as Major Projects office, no project currently under C5), which actually has legal authority to override regulations.
• Any new pipeline is IN ADDITION to the Transmountain Expansion, which the BC government was trying to trade off for a new pipeline, but the MOU is both.
• Dependence clause such that Pathways Plus will not happen without the pipeline, and vice versa. The Feds emissions plan falls significantly on Pathways Plus, so they have a very strong interest to see this pipeline built.

The part that isn't clear is the beginning talks about private ownership, but in the second portion says "Alberta will act as proponent for the development", which isn't clear how far down the road of development will Alberta remain the proponent.

Canada-Alberta Memorandum of Understanding

PREFACE At this pivotal global moment, Canada and Alberta, working closely with Indigenous Peoples and industry, must work together cooperatively, and within their respective jurisdictions, to foster the conditions necessary for infrastructure, including pipelines, rail, power generation, a...

www.pm.gc.ca

 

[darwink]

The part that isn't clear is the beginning talks about private ownership, but in the second portion says "Alberta will act as proponent for the development", which isn't clear how far down the road of development will Alberta remain the proponent.

Alberta contracted for Bitumen Royalty In Kind Barrels on Energy East to underpin the contract as a take or pay customer. Same on various versions of KXL. Energy East wouldn't have been launched if Alberta hadn't contracted.
Energy East

Keystone XL

I'd expect a combination of that, plus an equity stake to reduce front end risk (lets say $100 million up front to capitalize the project) with an ownership stake that the province would then mostly flip to first nations via loan products, basically a 'free' ownership system.

 

[Chowda7]

Carney's response when asked about Stephen Guilbeault tells me its just a matter of time before he gets politely booted

Carney signs major energy agreement with Alberta, laying out conditions for new oil pipeline

Prime Minister Mark Carney and Alberta Premier Danielle Smith signed a major new energy co-operation agreement on Thursday, outlining the conditions that need to be met for a new oil pipeline to the Pacific to proceed.

www.ctvnews.ca

 

[Chowda7]

The language is much stronger than I thought.

• Clean electricity regs and O&G emissions cap, gone
• Commitment to export the oil that reach the port, with no caveat for indigenous or BC agreement
• Only consultation and financial ownership/benefit with BC/FN, no mention of agreement or anything resembling a veto
• Commitment to use C-5 (not the same as Major Projects office, no project currently under C5), which actually has legal authority to override regulations.
• Any new pipeline is IN ADDITION to the Transmountain Expansion, which the BC government was trying to trade off for a new pipeline, but the MOU is both.
• Dependence clause such that Pathways Plus will not happen without the pipeline, and vice versa. The Feds emissions plan falls significantly on Pathways Plus, so they have a very strong interest to see this pipeline built.

The part that isn't clear is the beginning talks about private ownership, but in the second portion says "Alberta will act as proponent for the development", which isn't clear how far down the road of development will Alberta remain the proponent.

Canada-Alberta Memorandum of Understanding

PREFACE At this pivotal global moment, Canada and Alberta, working closely with Indigenous Peoples and industry, must work together cooperatively, and within their respective jurisdictions, to foster the conditions necessary for infrastructure, including pipelines, rail, power generation, a...

www.pm.gc.ca

The part about expanding power generation and transmission to support the data centre infrastructure caught my eye too. Its a very comprehensive plan