B.C., Carney ink deal to retain northern tanker ban ahead of Alberta pipeline update

The moves effectively open the way for a bitumen pipeline to B.C.’s southern region, potentially alongside the existing Trans Mountain Pipeline that stretches from Edmonton to Burnaby, B.C.

Carney was to travel to Calgary later Thursday to make a joint announcement with Alberta Premier Danielle Smith.

Smith’s government has been pushing for a new pipeline, but Carney declined to answer specific questions ahead of the news conference with Smith. “You can draw your own conclusions, but you can also wait until this afternoon,” he said.

Carney’s deal with B.C. extends far beyond the pipeline.

It sees the two governments commit to supporting new and expanding liquefied natural gas projects and exporting infrastructure, studying potential investments in the province’s existing ports and a major federal funding promise for the North Coast Transmission Line to deliver electricity to communities and projects in the region.

“(This agreement) will help transform the entire Canadian economy,” Carney said.

Eby said it puts the province on a “generational path to prosperity” and conceded that while B.C. doesn’t have to support any potential pipeline proposal, his government won’t fight it in court.

“This is an area of federal responsibility under the law. We learned this the hard way on the last pipeline,” Eby said.

“That’s why this agreement matters. It ensures that the northern tanker ban stays in place, and it ensures that if the pipeline goes ahead, British Columbians are fairly compensated for the environmental risks we would take.”

In Camrose, Alta., on Thursday, federal Conservative Leader Pierre Poilievre criticized Carney for sticking with the oil tanker ban. He said Canada should be trying to diversify its exporting options, but said he wasn’t opposed to another southern B.C. pipeline.

“You got one guy standing in the way of it all, and that’s Mark Carney,” Poilievre said. “Provide the permit, let the private sector build it, get out of the way and get it done.”

Eby’s deal with Carney also says B.C. recognizes Canada’s interests in “optimizing” the existing southern Trans Mountain Pipeline, increasing throughput to 1.2 million barrels a day, up from 890,000.

Eby had been critical of a possible Alberta pipeline to the West Coast, particularly if it meant abandoning the tanker ban.

Alberta’s pipeline pitch stems from an energy deal signed between Smith and Carney last fall. The Alberta accord saw Carney walk back a number of environmental laws and Smith’s government take on the initial planning work for a pipeline.

Carney has said the go-ahead for any such project depends on it being paid for and run privately while Alberta must also advance a major carbon capture and storage project being pitched by an alliance of oil producers.

A private backer for any new Alberta pipeline has yet to come forward.

The pipeline is not only an economic issue but a point of political tension that has led to Smith announcing a fall referendum on whether Alberta should stay in Canada or take steps to hold a second vote to leave Confederation.

Smith has said she wants Alberta to stay, but she’s also said federal policies and rules in recent years have stymied Alberta’s wellspring oil industry, leading some to say it’s time the province go it alone.

To that end, the pipeline has become a political mirror, with each side seeing it either as another form of alienation or co-operation.

Both Smith and Carney say the deal shows Canada can work. But leaders of Alberta’s separatist movement say if their province remains beholden to deals with Ottawa to get its own resources to market, then Confederation remains broken.

This report by The Canadian Press was first published July 2, 2026.

— With files by David Baxter in Ottawa

Chuck Chiang and Jack Farrell, The Canadian Press

by The Canadian Press

B.C., Carney ink deal to retain northern tanker ban ahead of Alberta pipeline update

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