Canadian and Design Construction writer
Ontario and Alberta are proposing a 3,300-kilometre pipeline that would transport oilsands crude to Sarnia, Ont., as part of an effort to increase domestic access to Alberta oil.
Ontario Premier Doug Ford and Alberta Premier Danielle Smith announced the proposed Northern Shield Energy Corridor on Monday, saying the project would strengthen Canada’s energy infrastructure and create new markets for Alberta producers.
“It’s a win-win-win; a win for Ontario, a win for Alberta, and a win for all of Canada,” Ford said.
The proposed pipeline would start in Hardisty, Alta., and initially carry 500,000 barrels of oil per day to Sarnia, a major petroleum and petrochemical centre with three operating refineries. The project could eventually be expanded to handle 800,000 barrels per day.
The route is similar to the proposed Energy East pipeline, which was cancelled in 2017 after facing regulatory and political challenges. Unlike that project, the Northern Shield route would avoid Quebec and travel southwest to Sarnia.
A pipeline would not directly connect to an ocean port, meaning it would primarily supply petroleum products to markets in Ontario, Quebec and the Maritimes rather than provide immediate access to overseas buyers.
“Wouldn’t it be great if we could bring this pipeline right across the country?” Ford said. “I think that would be absolutely beautiful for the East Coast provinces and the people of Quebec. But that’s up to them.”
“Everyone talks about the auto sector, but without plastics, carbon black, gas and all those things, (there is no auto sector),” said Sarnia Mayor Mike Bradley.
Sarnia has spent years advocating for the continued operation of Enbridge’s Line 5 pipeline, which supplies oil products to Ontario and Quebec. The pipeline has faced opposition from Michigan officials over concerns about the risk of a spill in the Great Lakes.
The proposal still depends on support from Saskatchewan and Manitoba. Saskatchewan Premier Scott Moe signed a previous agreement with Ontario and Alberta to co-operate on energy and infrastructure projects, while Manitoba Premier Wab Kinew did not sign on.
Ontario and Alberta have suggested the project could eventually be extended to the Port of Churchill in northern Manitoba, which would provide access to international markets.
Ontario is conducting a feasibility study on the pipeline, including estimated costs and construction timelines. The province has also started consultations with Indigenous communities.
“We will reach out to the private sector, but we won’t hesitate to do what Alberta and the Government of Canada are doing. Let’s explore all options,” Ford said.
Smith said even public investment could be worthwhile because tolls paid by oil companies could generate revenue.
The proposed pipeline comes as governments continue discussions about Canada’s energy future, with supporters highlighting economic benefits and energy security while environmental groups have raised concerns about emissions from expanded fossil fuel infrastructure.
The Northern Shield Energy Corridor remains in the planning stage and would require additional approvals before construction could proceed.
