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Prime Minister Mark Carney and Alberta Premier Danielle Smith are expected to sign an agreement on the future of Alberta's energy sector on Thursday, according to a senior federal government source.
CBC News reported earlier this week that the memorandum of understanding between the federal and provincial governments is likely to include some language about a path forward for the northwest B.C. oil pipeline that Smith has long demanded.
The federal source, who CBC News has agreed not to name because they weren't authorized to speak about the agreement, said the Thursday date is subject to change.
While the last Liberal government essentially slammed the door shut on an oil pipeline to the region, Carney is open to considering such a project if Alberta, as the proponent, conducts the necessary Indigenous consultation and negotiates with the B.C. government, among other conditions, the official said.
WATCH | B.C. premier slams 'secret' pipeline talks:B.C. Premier David Eby tells Power & Politics that 'I almost fell out of my seat' when he learned that Saskatchewan is involved in conversations with Ottawa and Alberta about a pipeline to the B.C. coast — conversations Eby says B.C. was unaware of. Plus, Saab CEO Micael Johansson says it's up to Canada to make a decision on what fighter jets it buys, but makes the case for how Saab's model could enable Canadian sovereignty.B.C. Premier David Eby strenuously opposes such a pipeline. Another potential roadblock is the Trudeau-era B.C. tanker ban bill, which prohibits ships laden with oil from docking at ports along the province's northern coast.
The federal government is considering granting limited exemptions, and there's a possibility it could use its power under C-5, the One Canadian Economy Act, to allow tankers associated with this proposed pipeline to bypass that moratorium.
No private proponent has recently expressed interest in constructing a pipeline to the West Coast. In an effort to attract a private company, Smith announced last month that her government plans to develop and submit a formal application to the federal Major Projects Office.