Mayors, First Nations chiefs in Alberta's oilsands region react tentatively to West Coast pipeline designation
Political leaders in Alberta’s oilsands region say they hope the potential one million barrels of oil per day that could flow through a new West Coast oil pipeline will also bring jobs and economic spinoffs.
PM and Alberta premier announced next steps for Pacific Link project Thursday
Vincent McDermott · CBC News
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Political leaders in Alberta’s oilsands region say they hope the potential one million barrels of oil per day that could flow through a new West Coast oil pipeline will also bring jobs and economic spinoffs.
Prime Minister Mark Carney and Alberta Premier Danielle Smith announced during a Thursday visit to Fort McMurray, Alta., that the proposed pipeline – which is now called the Pacific Link – is the first project designated as being in the national interest under the Building Canada Act.
Now the federal government will fast-track the project by finding ways to consolidate the approval process.
“What we’re seeing today overall is a strong provincial government working with the federal government, and that’s something we haven’t seen in a long time,” Regional Municipality of Wood Buffalo Mayor Sandy Bowman said following the news conference.
“It’s one of probably the biggest announcements we’ve had in a long time, and to have a prime minister here when it’s not a natural disaster is a huge thing. That’s usually when we have a prime minister in the community.”
The proposed 1,200-kilometre pipeline would start roughly 47 kilometres northeast of Edmonton in the town of Bruderheim. The pipeline would run towards the Roberts Bank deepwater port near Delta, B.C., and the oil it carries would be loaded onto tankers bound mostly for Asian markets.
The estimated cost of the pipeline is between $35.2 billion and $43.7 billion. The federal government and Alberta’s government aim to have the project completed by 2032-33. Smith has said she also wants the oilsands to double production to eight million barrels of oil per day by 2035.
The province and the federally-owned Trans Mountain Corporation will each own a 45 per cent stake in the pipeline. Calgary-based Pembina Pipeline, whose CEO Scott Burrows also attended Thursday’s announcement, will own a 10 per cent stake.
Pembina Pipeline will have an opportunity to purchase another 10 per cent stake in the project once it’s been completed. Carney said Indigenous communities will also be offered a minimum 10 per cent ownership stake.
Project will get ‘Indigenous buy-in’: Powder
Chief Raymond Powder of the Fort McKay First Nation, which is roughly 60 kilometres north of Fort McMurray, said he is interested in a potential partnership. He said he is also optimistic that the pipeline “will get Indigenous buy-in" as long as environmental concerns are addressed during consultation.
“I believe that today’s announcement actually brings benefits to the nation because when we think about it, where do we want to go and what do we want to do? We want to continue to sustain the growth of our nations,” Powder told reporters after the announcement.
"But within that support, of course, we're going to have to address some of the challenges."
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Mikisew Cree First Nation Chief Melody Lepine said she is not ready to endorse the pipeline. At the same time, Lepine said she is also not yet prepared to oppose the project.
Lepine, who leads an Indigenous community downstream from the oilsands in the Fort Chipewyan area, said local First Nation leaders met with Carney on Wednesday evening. She said they raised their concerns with equity stakes and environmental impacts.
“I’d say it’s too early to tell, but we’ve got the commitment that we’re going to work on these things, and I can say I’m committed to do that work,” Lepine said in an interview with CBC News. “If this pipeline is the opportunity to address a number of these concerns, then we’re going to take advantage of that.”
The Athabasca Chipewyan First Nation (ACFN), which is also based in the Fort Chipewyan area, issued a statement Thursday evening that said economic opportunities “do not diminish our responsibility” to address the First Nation’s ongoing health and environmental concerns stemming from industrial development in the oilsands.
“We want to emphasize that participation in these discussions does not constitute ACFN’s consent to the proposed pipeline,” the statement said.
“This is the beginning of a process and its outcome is not predetermined.”
WATCH | Bouncing back from a downturn:
Fort McMurray prepares for economic boom ahead of new pipeline
September 30|
Duration
2:03
Fort McMurray, Alta., is preparing for an economic boom as the federal government is expected to designate a new West Coast oil pipeline under the Building Canada Act, which would fast-track project's approval.Steady growth, not a boom: Bowman
In Edson, Alta., which sits on the pipeline’s path, Mayor Kevin Zahara said the community is going through a “mini-boom” thanks to two unrelated pipeline projects being built by TC Energy and Atco. He said he is ready to prepare for an influx of new construction workers for Pacific Link.
“I’m heartened to see the positive relationship between the province and the federal government, but it takes action,” he told CBC News Network’s Power and Politics on Wednesday.
“When you actually see shovels in the ground and things moving forward, I think that will have a bigger impact on residents.”
Bowman said he doubts the pipeline’s construction will signal a return to the lucrative days of the last oilsands boom, a period that saw record population growth and tax revenues rise across the oilsands region.
However, Bowman said he believes the region will experience “steady growth.” He pointed to the 2025 census, which reported a slight population bump for Wood Buffalo for the first time in a decade.
Bowman also said there is plenty of land ready for developers if new housing is needed.
“This community has gone from being a small town to a boomtown, which is now kind of a hometown,” he said.
ABOUT THE AUTHOR
Vincent McDermott covers Fort McMurray and the Wood Buffalo region for CBC News. He was previously the editor of Fort McMurray Today, where he was part of a team that won a National Newspaper Award for coverage of the 2016 Horse River Wildfire. He is also a former contributor to the official magazine of the Royal Astronomical Society of Canada. He can be reached at vincent.mcdermott@cbc.ca
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