British Columbia and Canada have signed a memorandum of understanding that outlines the framework for constructing a new oil pipeline to the West Coast. The agreement, announced on July 2, 2026, positions the pipeline as part of a broader set of commitments involving Alberta and major oil producers. However, the approval of the pipeline is conditional upon the completion of a carbon capture and storage project known as the Pathways Project. While the pipeline's construction is tied to this project, there is no agreed-upon timeline for its implementation. British Columbia has accepted the immediate risks associated with the pipeline, while Alberta and the oil industry have only committed to working toward the carbon capture initiative, with plans to complete it by 2045. The agreement reflects a growing complexity in the relationships between Canada, Alberta, British Columbia, and the oil sector. It includes several layers of commitments, agreements, and political statements, all aimed at advancing large-scale infrastructure projects. A key element of the deal is the establishment of a bilateral “Implementation Committee,” which will oversee future negotiations. This committee is intended to facilitate discussions on how to meet the requirements for the pipeline’s approval and operation. Despite these commitments, the agreement leaves many details unresolved. For instance, the specific terms of the carbon capture project remain unclear, and the exact responsibilities of each party are yet to be defined. The document does, however, make it clear that the pipeline’s approval hinges on the success of the Pathways Project. Premier David Eby has pledged to provide certainty regarding the pipeline, despite the lack of concrete guarantees from Alberta and the oil industry regarding the carbon capture initiative. The Pathways Project is described as a prerequisite for the pipeline’s approval, commencement, and ongoing construction. According to the November 2025 memorandum of understanding between Alberta and Canada, the two governments agree that the carbon capture and storage project is essential for the pipeline’s viability. However, there is no enforceable mechanism to ensure that the project will be completed. This creates a situation where British Columbia is being asked to accept the risks of a potentially damaging pipeline before Alberta has demonstrated the ability to deliver on its end of the bargain. Meanwhile, the pipeline’s construction is set to begin under the assumption that the carbon capture project will eventually come to fruition. This arrangement raises concerns about the potential environmental impact on British Columbia’s coastline, particularly given the uncertainty surrounding the timing and feasibility of the carbon capture initiative. The province is being asked to bear the costs and risks of the pipeline while Alberta and the oil industry delay their commitments. On the same day the Canada-B.C. agreement was announced, a separate trilateral memorandum of understanding was revealed, involving Canada, Alberta, and the Oil Sands Alliance, a coalition of major oil companies such as Canadian Natural Resources, Cenovus Energy, ConocoPhillips Canada, Imperial Oil, and Suncor. This additional agreement further complicates the landscape, suggesting that the pipeline and carbon capture initiatives are part of a larger strategy to secure long-term energy production and export capacity. As the national-interest designation and project conditions for the pipeline are finalized within the next year, Alberta and the oil industry will gain regulatory certainty for the pipeline’s construction. This comes long before they are required to fulfill their commitments regarding the carbon capture project. Critics argue that this arrangement resembles a form of coercion rather than collaborative planning, with British Columbia effectively being held hostage to Alberta’s and the oil industry’s delayed promises.
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