Carney, Smith sign deal to boost Canadian oil exports to Asia

Prime Minister Mark Carney and Alberta Premier Danielle Smith formalized a sweeping carbon capture and pipeline agreement in Calgary on Friday, concluding marathon negotiations that began during former Prime Minister Justin Trudeau's administration and establishing a new framework for federal-provincial energy cooperation. The accord imposes a CAN$130 (US$95) per ton carbon charge on oil sands emissions by 2040 — increasing from the current $95 rate — while approving a privately funded pipeline to British Columbia's Pacific coast.

The new conduit will transport approximately one million barrels of bitumen daily to port facilities on the Pacific Ocean for shipment to Asian markets, addressing what Carney described as Asian nations' demand for reliable Canadian energy supplies. In exchange for the elevated carbon pricing, Alberta committed to constructing a pipeline to Cold Lake that will transport emissions from 20 oil sands facilities to permanent geological storage sites deep underground.

Separatist Pressures

Smith characterized the accord as a "major step forward" for relations between Edmonton and Ottawa during the signing ceremony, though she avoided any mention of the independence movement gaining traction within her United Conservative Party. The premier's government has faced mounting pressure from separatist factions, with approximately 300,000 Albertans recently signing a petition advocating for provincial secession from Canada.

Carney emphasized that the agreement focused on "building trust in a Canada that works for all Canadians," framing the energy partnership as a national unity project rather than a political concession to separatist demands. The federal approval of the Pacific pipeline route marks a significant shift in Ottawa's energy policy, ending years of regulatory deadlock that had stalled export expansion plans to Asian buyers.