Alberta and Ontario unveil plan for eastward oil pipeline

Alberta Premier Danielle Smith and Ontario Premier Doug Ford said on Monday they are studying a 3,300-kilometre pipeline that would carry western Canadian crude from Hardisty, Alberta, to Sarnia, Ontario. The line is designed to transport up to 500,000 barrels per day, with the capacity to expand to 800,000 barrels, and could eventually be extended to Atlantic ports for shipments to Europe.

Smith described the project as a way to diversify Canada’s oil markets beyond the United States, while Ford called it a "sound investment" regardless of whether financing comes from public or private sources. A feasibility study is slated to begin, and both leaders acknowledged that significant work remains.

"There is still a lot of work ahead of us to deliver," Ford said.

The proposal faces several obstacles, including securing financing, obtaining regulatory approvals and completing consultations with Indigenous communities. A similar east-west project, Energy East, was cancelled in 2017 after extensive political and environmental opposition.

"It’s technically feasible but it would be a massive undertaking. We are only at a very early stage of the project and we don’t have the final route or cost estimates yet," said Daniel Béland, a political science professor at McGill University.

The plan follows recent announcements of a separate, taxpayer-subsidized pipeline on the Pacific coast aimed at Asian markets, a venture in which Alberta is partnering with Trans Mountain Corp. and Pembina Pipeline. Smith has also set a target to double Alberta’s oil output to 8 million barrels per day within the next 10-15 years, a goal described by an energy economist as "incredibly ambitious".

The premiers said the eastward pipeline could help reduce Canada’s reliance on the U.S. market amid ongoing trade tensions, but they noted that final route decisions and cost estimates are still pending.