B.C. government wants revenue share for any new Alberta oil pipeline to coast | Daily Hive

B.C. government agrees to talks on new Alberta oil pipeline to coast, with revenue share and tanker ban

Burnaby Refinery, which is fed by the Trans Mountain Pipeline. (EB Adventure Photography/Shutterstock)

The Government of British Columbia is not endorsing a new oil pipeline from Alberta to the West Coast, but it is agreeing to enter discussions on routing and permitting if the Government of Canada and the Government of Alberta meet a series of conditions.

Under the new Canada-British Columbia Cooperative Prosperity Agreement announced today by Prime Minister Mark Carney and Premier David Eby, the federal and B.C. governments acknowledge the separate federal agreement with Premier Danielle Smith’s Alberta government in May 2026 that supports a new pipeline to the B.C. coast, subject to certain requirements.

Today’s announced agreement states the proposed pipeline is tied to the construction of the “Pathways Carbon Capture and Sequestration” project, as well as the federal government’s need to consult with First Nations.

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The B.C. government is making clear it is not seeking the project, but says it recognizes the federal government’s ultimate authority over pipelines that cross provincial boundaries.

“Although B.C. does not seek this project, it recognises its constitutional obligations and commits to acting in good faith to engage in the necessary routing and permitting discussions, within its jurisdiction, provided the following reciprocal commitments are met,” the agreement states.

Those conditions include keeping the federal North Coast tanker ban in place, with the agreement stating that Canada will maintain it “without alteration, suspension, or narrowing of scope.”

That is a key commitment for the B.C. government, given the long-standing concerns along the province’s coast over oil tanker traffic, spill risks, and the potential impacts on coastal communities, marine ecosystems, and First Nations territories.

The agreement also commits the federal government to early and meaningful consultation with First Nations, while also looking at their economic participation. This includes federal loan guarantee support to help First Nations communities along the pipeline route acquire equity in the project.

Beyond consultation, the B.C. government is also seeking a direct, upfront and ongoing financial return if the pipeline project proceeds.

The federal and B.C. governments have agreed to negotiate a legally binding economic and revenue framework based on the principle that the province must “share meaningfully in the economic upside of the project.”

The strategies under discussion include an annual royalty payment to the B.C. government from the pipeline operator, as well as an environmental liability and emergency response fund held in trust that would be accessible by both the B.C. government and First Nations.

The agreement also points to a more streamlined regulatory approach. The federal and B.C. governments will cooperate on assessments and permitting to support a “one project one review” process for projects under federal jurisdiction and assessed through the Impact Assessment Act and the Canadian Energy Regulator Act.

The pipeline commitments also extend to the existing Trans Mountain system.

Over half a year ago, Alberta Premier Danielle Smith told local media her government had identified three potential new pipeline routes, each reaching a different B.C. port location. The options include two possible sites in the Prince Rupert area, as well as the possibility of an export terminal at Roberts Bank in Delta, within Metro Vancouver, where a major port facility already exists and large container terminal expansion projects are also planned.

Through today’s new agreement, the B.C. government also recognizes the federal government’s interest in increasing the capacity of the federally-owned Trans Mountain Pipeline that ends in Metro Vancouver, growing it from 890,000 barrels per day to 1,190,000 barrels per day. The agreement says this could be achieved through drag-reducing agents and mainline optimization, rather than a full new expansion project.

However, the B.C. government’s support for that Trans Mountain Pipeline capacity optimization work is also conditional. The provincial government wants federal support for capital costs incurred by provincial entities, as well as a renegotiation of Condition Five to ensure B.C. receives what the agreement calls “a fair share of the additional fiscal and economic benefits” from this optimization project.

The Trans Mountain Pipeline expansion reached completion in 2024. The pipeline is intended to enable up to 34 oil tanker loadings per month at the expanded Westridge Marine Terminal in Burnaby — an average of one or two tankers per day in Burrard Inlet. Last month, Trans Mountain Corporation reported that its pipelines reached 83 per cent of capacity in the first quarter of 2026 and is expected to further increase to 90 per cent in the second quarter.

Under the agreement announced today, several of the pipeline-related items now have a deadline. According to the agreement’s implementation timeline, both governments are aiming to complete work by Dec. 1, 2026, on financial commitments related to a potential new pipeline to Asian markets, renegotiated revenue sharing tied to the existing Trans Mountain Expansion, and coastal protection measures.

While the agreement does not amount to the B.C. government giving a green light to a new pipeline, it does mark a significant shift, as the provincial government is agreeing to participate in the process, provided that the federal government meets the conditions, especially by giving B.C. a large share of the economic upside.

The agreement also spans strategies and policies for steel manufacturing, softwood lumber, support for B.C.’s Liquefied Natural Gas (LNG) exports, skills training and talent development, flood mitigation, the establishment of a National Carbon Credit Framework, and the further expansion of new clean electricity projects.

It also includes enhancing the capacity and efficiency of Port of Vancouver facilities, including the new Roberts Bank container terminal.

As part of today’s announcement, there will also be direct federal funding for B.C. Hydro’s first two phases of the new North Coast Transmission Line and Red Chris Mine Extension, as well as the specified amount of up to $3 billion in direct federal funding for the new replacement George Massey Tunnel — up to one-third of the project’s total cost.

“Today’s historic agreement creates the conditions to transform the B.C. and Canadian economies to become more resilient, sustainable, and independent. Canada and British Columbia are broadening and accelerating major energy projects and trade corridors, protecting our land, wildlife, and waters, giving workers the support and opportunities they need to help build Canada strong, and creating extensive, large-scale opportunities for true partnerships with First Nations. Together, we’re turning British Columbia’s enormous economic potential into lasting shared prosperity. We’re building British Columbia strong to build Canada strong for all,” said Prime Minister Carney in a statement.

Premier Eby added, “This agreement is about building B.C.’s future — not just for this year, but for generations to come. It means more good jobs for workers and more opportunities to train for better pay, all while protecting the beautiful places that make our province so remarkable. This deal will deliver faster commutes as we build critical infrastructure, less pollution as we power growth with clean electricity, and the kind of shared prosperity that funds strong public services.”

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