Ottawa and Alberta sign agreement on West Coast pipeline, propose path to revisiting B.C. tanker limits

The federal government and Alberta have signed a new memorandum of understanding that lays out a framework for advancing an oil pipeline to Canada’s West Coast, while also opening the door to potential changes to British Columbia’s tanker restrictions. Prime Minister Mark Carney and Alberta Premier Danielle Smith formalized the agreement at a ceremony in Calgary on Thursday, describing it as a step toward defining the project as one of national interest under the Building Canada Act.

Under the terms released by officials, Ottawa says it would be prepared to adjust the West Coast tanker ban if a future pipeline secures national interest designation and includes opportunities for Indigenous ownership and economic participation. Alberta, in turn, has committed to raising its industrial carbon price to 130 dollars per tonne by April 1, which would place it above the federal minimum. The federal government also agreed to pause clean electricity regulations in Alberta while both parties negotiate a revised carbon pricing framework.

The understanding links any future pipeline to the proposed Pathways Alliance carbon capture development, with both levels of government stating the two projects would need to advance together. The approach comes amid public pushback from several coastal First Nations in British Columbia, who argued earlier this month that a pipeline to the Pacific is not viable, and after Premier David Eby warned that easing tanker restrictions could interfere with existing coastal development and shared governance agreements.

The MOU says Ottawa and Alberta intend to engage directly with the B.C. government as planning progresses, while also exploring ways to support the province’s economic priorities through other nationally significant projects. For communities in Western Canada, including those in the Lower Mainland and central Alberta, the agreement signals another phase in ongoing federal–provincial negotiations over resource development and climate policy.