Federal and Alberta governments have unveiled a Memorandum of Understanding (MOU) aimed at facilitating the construction of a pipeline from Alberta through British Columbia to the coast. This initiative is intended to expand access to markets beyond the United States for Canadian oil. The announcement has been met with enthusiasm from various media outlets and political figures.

Headlines such as "Ottawa-Alberta deal clears hurdles for West Coast pipeline" and "Carney inks new energy deal with Alberta, paving way to new pipeline" reflect the optimism surrounding the agreement. Former federal environment minister Steven Guilbeault's resignation from Prime Minister Mark Carney's cabinet has been interpreted by some as a sign that the MOU could lead to actual pipeline construction.

Jason Kenney, a former Alberta premier, praised the agreement as "historic," while Alberta NDP Leader Naheed Nenshi described it as a "positive step for our energy future." Prime Minister Carney emphasized the potential for Canada to build critical infrastructure at an unprecedented pace.

However, upon reviewing the six-page MOU, some observers have expressed confusion about its content. Critics argue that the document is convoluted and difficult to understand. For instance, the MOU states that the approval and construction of the pipeline are prerequisites for the Pathways project, while simultaneously asserting that the Pathways project is a prerequisite for the pipeline. This circular reasoning raises questions about the clarity of the agreement.

The MOU also outlines the establishment of an "Implementation Committee" tasked with determining how Alberta can submit its pipeline application to the Major Projects Office by July 1, 2026. This raises further questions about the meaning of "determining the means" and the timeline for project approval.

Additionally, the MOU stipulates that the private sector must finance and construct the pipeline, prompting concerns about which companies would be willing to take on such risks. It also requires that Indigenous Peoples co-own the project and that Alberta collaborate with British Columbia to ensure local economic benefits.

Despite the optimism surrounding the MOU, significant uncertainties remain regarding project timelines and approval processes. The Carney government established the Major Projects Office to expedite approvals, but many of the selected projects already had prior approvals or were at advanced stages. The lack of clarity in the MOU may hinder investor confidence in the pipeline's future.