No Pipeline, but Optimism Remains
From Terrace, British Columbia, Prime Minister Mark Carney announced the second round of major nation-building initiatives to be advanced through the federal Major Projects Office, a mechanism created to accelerate approvals for key economic and infrastructure projects across the country. The announcement outlined a diverse set of proposals spanning energy, mining, transmission, and conservation, each positioned by the federal government as foundational to Canada’s long-term economic competitiveness and environmental stewardship.
For Alberta, however, the update carried a notable omission. The proposed pipeline project championed by Premier Danielle Smith and the United Conservative Party, an initiative the provincial government has repeatedly framed as essential to unlocking investment and expanding market access for Alberta’s resources, was not included among the selected projects. For now, at least, the pipeline will remain in the queue.
The projects highlighted in this round of approvals include the following:
Northwest Critical Conservation Corridor
North Coast Transmission Line
Ksi Lisims LNG
Crawford Nickel Project
Nouveau Monde Graphite’s Matawinie Mine
Northcliff Resources’ Sisson Mine
Iqaluit Nukkiksautiit Hydro Project
Together, these projects represent a cross-section of Canada’s evolving economic priorities: decarbonization, electrification, Indigenous partnerships, and expansion of domestic critical minerals production. They also illustrate the federal government’s intention to balance resource development with climate objectives, a theme the Prime Minister emphasized in his remarks.
In a news release accompanying the announcement, Prime Minister Carney stated that, “faced with uncertainty, Canada’s new government is making bold choices to grow our economy stronger than ever before – with major investments, faster approvals, and a clear signal to workers and industry: it’s time to build. We are building sustainably, in partnership with Indigenous Peoples, and we are building Canadian, with Canadian workers, materials, and expertise. We’re taking control of our future and building Canada strong.”
While this set of priorities does not directly advance the pipeline advocated by Alberta’s government, the broader context suggests that provincial and federal relations may be entering a more collaborative phase. Early indications point to a shift in tone, one that could ultimately reshape provincial-federal dynamics after years of strained interactions.
Just one day before the announcement, Premier Smith stated that she expects to sign a Memorandum of Understanding (MOU) with the federal government in the coming days. Although details of the agreement have not yet been released, the Premier referred to the development as a step toward securing key elements of what she has previously described as a “grand bargain” with Ottawa. While it remains unclear what specific commitments will ultimately materialize, anticipation is growing around the possibility that the two governments may find common ground on shared economic and environmental goals.
Interestingly, Smith also expressed encouragement regarding the projects approved for the Major Projects Office, even though Alberta’s pipeline was not among them. Speaking to reporters, she said, “I’m really encouraged to see that so many of the other provinces are proposing resource projects that are revenue-generating.” Her comments emphasized the importance of maintaining a strong national resource economy and implied a potential willingness to support other provinces’ development ambitions as part of a broader national strategy.
Federal officials, for their part, have suggested that Alberta’s priorities remain part of ongoing discussions. According to reporting from The Globe and Mail, Prime Minister Carney has stated that the Pathways Alliance carbon-capture initiative, a multi-billion-dollar project supported by several major oil sands producers, remains “very much part of these discussions.” The Pathways project has long been a focal point for both provincial and federal policymakers seeking to balance emissions reduction with continued resource development, and its inclusion in ongoing deliberations suggests that Alberta’s economic objectives are not being sidelined.
This context marks a noticeable change from the sometimes adversarial dynamic that characterized relations between Ottawa and Alberta in recent years. While former Prime Minister Justin Trudeau played a critical role (alongside the previous Alberta NDP government) in purchasing and advancing the Trans Mountain Expansion (TMX) pipeline to completion, the relationship between the federal government and Alberta’s UCP administration remained uneven after 2019. Major progress on large-scale energy infrastructure projects slowed during this period, contributing to mounting frustrations within the province and a resurgence of separatist sentiment among some groups.
Prime Minister Carney’s early approach appears aimed at recalibrating that relationship. By emphasizing collaboration, accelerating federal decision-making processes, and signaling openness to projects that support both economic growth and emissions reduction, the federal government may be attempting to rebuild trust with Alberta stakeholders. Whether this strategy will ultimately produce major new infrastructure approvals remains to be seen, but the shift in tone is unmistakable.
For Alberta, even incremental improvements in federal-provincial coordination could carry significant implications. The province continues to advocate for increased export capacity, expanded market access, and greater autonomy in areas such as electricity policy and natural resource management. A more constructive federal counterpart could help advance some of these objectives, or at least reduce the level of political friction that has often dominated intergovernmental discourse in recent years.
There is also a broader national consideration at play. Over the past decade, economic and political tensions between Alberta and the federal government have periodically shaped (and sometimes strained) the national dialogue. Discussions surrounding equalization, regulatory processes, resource development, and climate policy have contributed to an environment in which regional dissatisfaction occasionally translated into calls for provincial sovereignty or even formal separation from a vocal minority of residents.
If sustained federal-provincial cooperation can be achieved, it could help lower the temperature of these debates. Improved collaboration may also provide greater policy stability for industry, which often seeks predictable regulatory processes and clear long-term signals from both levels of government. For sectors such as energy, mining, and critical minerals, these conditions are increasingly important as companies evaluate multi-decade investment decisions.
Ultimately, while Alberta did not receive the pipeline approval it was seeking in this latest round of federal project selections, the broader developments may still point toward a more constructive relationship between Edmonton and Ottawa. The upcoming MOU, continued discussions about the Pathways Alliance, and Premier Smith’s positive remarks about other provinces’ projects suggest potential for a more cooperative phase in federal-provincial relations.
The next several weeks will likely provide additional clarity. If the governments are able to formalize new areas of agreement and maintain a mutual focus on both economic competitiveness and environmental responsibility, the emerging trend toward collaboration could continue. For Alberta, such an outcome may provide opportunities to advance key priorities through a more predictable and less adversarial intergovernmental framework.
For now, the federal government’s latest announcement underscores its intention to accelerate a range of strategic projects across Canada, while provincial leaders, including here in Alberta, wait to see how this more collaborative approach unfolds. Whether these early signs translate into tangible outcomes for Alberta’s economic agenda remains a key question, but the initial signals indicate more alignment than many observers anticipated.