Defunct Pipeline Pitches Revived with New Plans for Oilsands Crude Transport

Pipeline projects long thought abandoned are experiencing a resurgence, with past proposals for transporting oilsands crude being revived under new identities, backed by different proponents, and following altered routes. Notably, some of these efforts are being spearheaded by political figures rather than solely the private sector.

A prominent example is the proposed Northern Shield Energy Corridor, an east-west initiative aiming to move an initial 500,000 barrels of crude daily from Hardisty, Alberta, to refineries in Sarnia, Ontario. This plan is a reincarnation of sorts of TransCanada Corp.'s (now TC Energy Corp.) defunct Energy East project, which was cancelled in 2017 due to "changed circumstances," including environmental opposition and weak oil prices.

Unlike the original Energy East, which faced significant opposition in Quebec, the Northern Shield proposal intends to bypass the province, at least initially. Alberta Premier Danielle Smith indicated that the corridor could eventually expand to handle 800,000 barrels per day and reach the Atlantic Ocean, facilitating shipments to Europe. The project could also supply crude for a strategic petroleum reserve in eastern Canada.

Ontario Premier Doug Ford expressed enthusiasm for the project, stating, "No one would ever think in 100 years this would be done." The Ontario government is currently conducting a feasibility study to clarify funding mechanisms and potential private-sector involvement. The announcement of Northern Shield followed Alberta's application for a new pipeline to the West Coast, though federal regulations currently ban oil tanker loading on the north coast, leading Alberta to propose a southern route instead.

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No one would ever think in 100 years this would be done.