Prime Minister Mark Carney and Alberta Premier Danielle Smith are anticipated to finalize an agreement concerning the future of Alberta’s energy sector on Thursday, as per a reliable source within the federal government. The expected memorandum of understanding between the federal and provincial authorities is likely to address the contentious issue of the northwest B.C. oil pipeline, a long-standing demand from Premier Smith.

The federal insider, who remains unnamed due to lack of authorization to discuss the agreement, mentioned that the scheduled Thursday signing date is subject to potential changes. Unlike the previous Liberal government’s opposition to an oil pipeline in the region, Carney is reportedly open to considering such a project if Alberta, as the project proponent, fulfills necessary Indigenous consultations and engages in negotiations with the B.C. government, among other stipulations.

Despite strong opposition from B.C. Premier David Eby towards the proposed pipeline, potential hurdles include the existing Trudeau-era B.C. tanker ban, prohibiting oil-laden ships from accessing ports along the northern coast of the province. However, there are discussions within the federal government regarding potential exemptions and the utilization of powers under C-5, the One Canadian Economy Act, to potentially allow tankers associated with the proposed pipeline to bypass the ban.

Currently, no private entity has shown recent interest in constructing a pipeline to the West Coast. In an attempt to attract private investment, Premier Smith announced plans last month for her government to develop and submit a formal application to the federal Major Projects Office.

An anticipated energy agreement with Alberta is on the horizon, with Prime Minister Mark Carney indicating that discussions regarding a new pipeline to B.C.’s northern coast are ongoing and not yet finalized. Despite some support, the project faces opposition from various stakeholders, including B.C.’s premier.