Alberta Premier Danielle Smith and Ontario Premier Doug Ford proposed a new 3,300-kilometer pipeline route on Monday during a news conference in Calgary.
The joint proposal, named the Northern Shield Energy Corridor, aims to transport crude oil across four Canadian provinces.
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The proposed line would move crude from Hardisty, Alberta, to Sarnia, Ontario, traveling east through Regina and Winnipeg.
Initial capacity is set at 500,000 barrels per day, with potential expansion to 800,000 barrels daily.
Interprovincial Energy Cooperation
The announcement coincides with ongoing discussions regarding a separate $35-billion West Coast pipeline partnership between the federal government and Alberta.
That project would transport one million barrels of oil per day from Bruderheim, Alberta, to Roberts Bank, British Columbia.
Ontario Infrastructure is serving as a commercial advisor to complete a feasibility study on the Northern Shield corridor by the end of 2026.
The exact cost and funding mechanisms for the massive cross-provincial project remain undetermined.
"Our plan to build the Northern Shield Energy Corridor is a plan to protect workers in Ontario, Alberta and every part of the country," stated Premier Doug Ford.
The Ontario premier expressed strong support for the infrastructure development, citing recent federal backing for the West Coast route as a precedent for inter-provincial energy cooperation.
"I think it's a great investment, no matter if it's the government that will get a good ROI over a certain period of time.
Always prefer looking at the private sector investing, and I think it's going to be an incredible project," said Ford.
