Prime Minister Mark Carney indicated on Friday that a new pipeline project for Alberta is likely to move forward. Speaking at the Canadian Club Toronto, Carney reassured the audience that his government is actively addressing pipeline issues. "Danielle's on line one," he said, referring to Alberta Premier Danielle Smith. "Don't worry, it's going to happen." He added, "Well, something's going to happen, let's put it that way," while joking about his negotiating position.

In Calgary, Premier Smith expressed optimism about advancing discussions with the federal government regarding a new pipeline to transport oil to the British Columbia coast. She also mentioned the Pathways Alliance carbon capture and storage initiative. "I'm still working with the federal government to see if we can come up with a memorandum of understanding so we can get a bitumen pipeline to Asian markets, as well as the Pathways project, as well as remove some of the bad laws that will allow for that investment to occur," Smith stated.

The proposal for a new oil pipeline has been a contentious issue in Canada for many years. The federal Liberal government, under Carney, has been cautious in its support for such projects, even as it promotes initiatives aimed at boosting the economy and reducing reliance on U.S. exports. Federal Natural Resources Minister Tim Hodgson noted that any new pipelines to the West Coast would require backing from the B.C. government and affected Indigenous groups. He has largely refrained from commenting on the proposal, labeling it hypothetical without a specific project being advocated.

B.C. Premier David Eby has characterized the notion of a new coastal oil pipeline as "fictional." Smith expressed hope for further developments regarding the pipeline before the Grey Cup next week. "If we can get rid of some of the bad laws, I have a lot of optimism we'll be able to build pipelines in virtually any direction," she said.

Carney, addressing the Toronto audience, asserted that existing laws, enacted under former Prime Minister Justin Trudeau, are not hindering significant energy projects. He mentioned that his government is working to expedite project approvals through the newly established Major Projects Office, which is currently reviewing numerous proposals for large industrial initiatives.

When questioned about calls from fossil fuel industry advocates to eliminate the federal emissions cap or the Impact Assessment Act to facilitate more major project proposals, Carney firmly stated that these laws do not require changes. "That's what they say, but they're wrong," he said. "We are getting projects coming in. We're in discussions with the province of Alberta directly on things. But look, we've also got a view that's shared by the government of Alberta in the 'grand bargain' — I'm going to quote the premier of Alberta — that the future of oil export is going to be low carbon."

Carney emphasized that combining oilsands development with carbon capture technology is a sensible approach. He noted that this strategy could also foster a multi-billion dollar industry for Canada. His remarks were made while promoting his first budget, which aims to stimulate capital investment in major industrial projects to enhance growth and expand Canada's export capabilities. Additionally, Carney highlighted the potential for increased liquefied natural gas exports, stating that Asian markets are eager for LNG, which often serves as a replacement for coal.