Prime Minister Mark Carney says the federal and provincial governments will be “equal partners” in a new bitumen pipeline project, with Pembina Pipeline Corporation bringing its “private sector expertise” and “capital discipline.”

Carney called the project “financially viable, attractive,” saying it “unlocks enormous value for the country and for the equity stakeholders” — a group he said includes both governments and Indigenous partners. 

Pembina’s equity stake is unclear. Alberta Premier Danielle Smith said the private sector’s share “remains to be seen,” joking that the company’s CEO Scott Burrows might be persuaded to take on a “larger and larger share” as certainty around the project grows.

Smith could not say how much taxpayer money would go into the project. 

That remains to be negotiated, she said, while suggesting it would prove a lucrative investment for the public purse.

Carney framed it as “not a question of federal expenditure,” but more of “a question of investment from the Canadian government.” 

Trans Mountain, the Crown corporation whose pipeline purchase and expansion were financed with roughly $34 billion in public funds, will be responsible for building the new pipeline on the federal government’s behalf.

The Indigenous partners in this venture have not yet been named, though Smith promised more details on equity opportunities in the coming months.

The original agreement that set the stage for this pipeline proposal committed Alberta and Ottawa to “one or more private sector constructed and financed pipelines with Indigenous co-ownership.” It made no mention of government ownership stakes.

Project economics

Asked whether she had assurances from the oil patch that production would increase enough to fill a new pipeline, Smith said conversations are ongoing with oil sands producers to ensure the “right market conditions” are in place.

Neither Smith nor Carney pointed to any formal commitments from producers to ship on a new pipeline.

In terms of risk, the Alberta leader said having Pembina at the table as a partner gives her government that it is a “financially viable project from a private sector perspective.” 

She added that the southern route, running from Alberta to a “deep water VLCC-capable port terminal on B.C.’s southwest coast,” is the fastest way to boost exports to Asian markets, suggesting northern options would have taken years longer to come online.

Hours before the pipeline details were announced, the federal government committed $10 billion to the Port of Vancouver’s Roberts Bank Terminal 2 expansion, a project previously pegged at $3.5 billion. Carney cited the port investment as part of the same infrastructure push, positioning Vancouver-area terminals to handle growing exports.

Carney said a deal has been reached with oil sands producers to finance the carbon capture project, though he offered few details on what won over an industry that had long resisted committing to it.

READ MORE: Can Ottawa grant national interest status to a pipeline with no route or private proponent?

Several key figures at the office, including CEO Dawn Farrell and Indigenous affairs lead Rob Van Walleghem, previously worked for Trans Mountain, where their roles involved Indigenous consultation along the same corridor the proposed pipeline would follow. That work gave them existing relationships with First Nations on the route.