Premiers Ford, Smith propose new ‘Northern Shield’ west-east oil pipeline

Ontario Premier Doug Ford and Alberta Premier Danielle Smith are proposing a new pipeline, connecting Alberta oil to Ontario’s refining belt in Sarnia.

The plan is just in the beginning stages, with important questions like cost and timeline not yet answered, but the idea is being launched amid the often political backdrop of the Calgary Stampede.

With the grandeur of the greatest outdoor show on Earth in full swing, politicians like Prime Minister Mark Carney, Federal Conservative Leader Pierre Poilievre, and Saskatchewan Premier Scott Moe, Newfoundland and Labrador Premier Tony Wakeham, along with Smith and Ford, are all putting on their western attire and using the platform to get their messages out.

“A new east-west pipeline would move an additional 500,000 barrels of Alberta oil per day,” said Smith.

“Built using Canadian steel by Canadian workers,” said Ford.

Smith and Ford announced a proposed route for a new energy corridor called Northern Shield, traveling 3,300 kilometres from Hardisty, Alta., to refineries in Sarnia, Ont., for domestic consumption and export to European markets.

WATCH MORE: Ottawa, Alberta relations grow stronger as West Coast pipeline agreed upon

Ford says a feasibility study is underway to determine estimated costs, and whether the taxpayer or the private sector or some combination would foot the bill.

“I think it’s a great investment, no matter if it’s the government that would get a good ROI (Return on Investment), always prefer looking at the private sector investing,” said Ford.

“It fits into Mark Carney’s vision of energy sovereignty, it certainly fits into Danielle Smith’s vision for growing the oil and gas industry,” said Political Analyst Lori Williams.

Williams says the idea for a domestic east-west route predates the recent troubles with the Trump administration, because the pipeline currently bringing oil to Sarnia goes through the U.S., and that has raised sovereignty concerns.

But a potential challenge to this proposed route could be Manitoba Premier Wab Kinew’s government not supporting this plan.

“It’s not because he opposes a pipeline, it’s because he wants Indigenous consultation to be the first step and not a later sort of afterthought,” said Williams.

READ MORE: Premiers Smith, Ford unveil proposed west-east oil pipeline route

Kinew has also said he prefers a pipeline to the Port of Churchill in northern Manitoba, something Ford is suggesting could be included in an expansion to the Northern Shield route.

“We’ll work something out and I’m 100 per cent behind putting a pipeline up to Churchill,” said Ford.

Advocacy group Environmental Defence is slamming the idea, calling it an unnecessary oil-export scheme and saying the pipeline would bring in more oil than Ontario’s refineries could handle.

“Ontario does not have an oil-supply shortage. This is clearly about expanding oil production and exports, not protecting Ontario families,” said Emily Hunter with Environmental Defence in a statement.

Also slamming the proposal are the Ontario Liberals, who called it, “just another sideshow at the rodeo.”
Monday’s announcement is an extension of the Memorandum of Understanding signed last summer by Ontario, Alberta and Saskatchewan, agreeing to build new pipeline and energy infrastructure.

The Ford government says the study should be complete by the end of the year.

READ MORE: First Nation seeks transparency as questions loom over Sarnia, Ont., pipeline leak