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EDMONTON — Alberta is backing a private member’s bill that would repeal the federal oil tanker ban on British Columbia’s northern coast, arguing the change could open another export route for Alberta crude through Prince Rupert.
Premier Danielle Smith and Energy and Minerals Minister Brian Jean issued a joint statement Monday supporting Bill C-264, which the province says would repeal the federal Oil Tanker Moratorium Act.
The bill is sponsored by David McKenzie, the Conservative MP for Calgary Signal Hill, and is scheduled for debate in Parliament on Wednesday.
Smith said repealing the legislation could allow crude oil to be moved by rail to Prince Rupert and then loaded onto tankers for export to international markets.
“Repealing the ban would open the door to crude-by-rail exports through Prince Rupert, giving Alberta another route to reach customers around the world,” Smith said.
The proposal is distinct from plans for additional oil pipelines to the Pacific coast.
A crude-by-rail route would use existing railway infrastructure to move oil across British Columbia, while requiring marine terminal infrastructure at Prince Rupert and the ability to load the crude onto tankers.
That possibility has received renewed attention after Calgary-based Strathcona Resources proposed moving up to 250,000 barrels of crude a day by rail from Hardisty, Alta., to Prince Rupert using existing CN Rail lines.
Strathcona has said the project could be operational in less than two years and would be privately financed. The company would need Ottawa to change or provide an exemption from the tanker restrictions before crude could be loaded onto ships at Prince Rupert.
Smith said Alberta remains too dependent on the United States as a customer for its oil and argued additional access to the Pacific coast would create more competition for Canadian crude.
“Our oil to the United States is selling at a significant discount at a disadvantage to the entire country,” Smith said. “The only effective way to close that gap is to increase exports off our western coast and get more customers competing for our energy.”
She said the Trans Mountain Expansion has improved access to overseas markets, particularly in Asia, but Alberta wants additional pipeline and marine export capacity.
The province is also supporting the Pacific Link pipeline, which Alberta says has been designated a project of national importance.
Jean said Pacific Link would export from southern British Columbia and would not eliminate the need for additional capacity through the province’s northern coast.
He said Prince Rupert would offer a shorter marine route to Asian markets, potentially reducing shipping distances, fuel consumption and associated emissions.
“The tanker ban remains a stumbling block to accessing Asia, one of the fastest growing markets in the world,” Jean said.
The federal Oil Tanker Moratorium Act restricts tankers carrying crude oil and persistent oils from loading or unloading at ports along British Columbia’s northern coast.
Jean criticized the legislation for applying specifically to oil tanker activity in that region while not imposing the same restrictions on natural gas, natural gas liquids or other commodities transported by tanker.
He also argued ships carrying oil from other countries continue travelling along the northwest coast to ports in Alaska and Washington state.
The Alberta government has long opposed the moratorium, describing it as a barrier to expanding Canadian oil exports.
Smith said additional tidewater access would help Canada capture higher prices for its resources while supporting government revenues and investment.
She also said major energy projects can create economic opportunities for Indigenous communities through investment and ownership.
“Canada cannot become a global energy superpower while federal policies continue to stand in the way of getting our energy to the world,” Smith said.
Jean said Alberta believes the combination of additional pipeline capacity and potential crude-by-rail exports through Prince Rupert could expand Canada’s access to Asian markets.
He said repealing the tanker ban would not replace the need for future pipelines but would remove a barrier to developing additional export capacity on British Columbia’s northwest coast.
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