OTTAWA — Prime Minister Mark Carney announced that his government will reveal a new set of nation-building projects on Thursday in Prince Rupert, British Columbia. This port city is significant as Alberta Premier Danielle Smith advocates for a new pipeline capable of transporting one million barrels of bitumen per day. The proposal has faced opposition from the British Columbia government and coastal First Nations, presenting a challenge for the relationship between Ottawa and Alberta under Carney's leadership.

Carney made the announcement during a budget-related event in New Brunswick, where he hinted that some projects from that province would be included in the upcoming list. He previously stated that the second batch of projects would be unveiled before November 16, following the initial list released in September.

In a press conference on Monday, Carney emphasized that many of the projects under consideration span multiple provinces. He reiterated that the selection process for projects to be forwarded to the new federal Major Projects Office would be ongoing. "This is not a one-and-done," Carney said. "It’s not one round of projects, and then we move forward with those. This is a living list."

While provinces and territories have been eager to have their projects included in the federal list, Smith has been particularly vocal in her request for expedited approvals for the proposed oil pipeline from Alberta to British Columbia's northern coast. Energy and Natural Resources Minister Tim Hodgson, who is responsible for major projects under Carney's government, stated that Alberta must first submit its proposal. It will be assessed using the same criteria as other projects, which includes advancing Indigenous reconciliation and demonstrating a commitment to clean growth.

Last week, a spokesperson for Smith's office indicated that Alberta is in ongoing negotiations with the federal government to establish a new memorandum of understanding (MOU). This MOU aims to address various environmental policies implemented under former Prime Minister Justin Trudeau. Sam Blackett, Smith's press secretary, mentioned that the province hopes to finalize the MOU by mid-November.

During a business event in Toronto last week, Carney dismissed industry concerns that policies like the proposed oil and gas emissions cap and the federal Impact Assessment Act were hindering project proposals. "Don’t worry, we’re on the pipeline stuff. Danielle’s (Smith) on line one. Don’t worry, it’s going to happen," Carney stated. He later added, "Well, something’s going to happen. Let’s put it that way."

The challenge for Carney's government lies in balancing the need to address climate change and promote clean growth while also supporting Canada's conventional energy sector. Smith's United Conservative Party government has formed a technical working group with several major oil and gas companies to advance the pipeline proposal. They plan to submit their application to the new federal projects office by May 2026.

Smith has allocated $14 million from Alberta's tax revenue to develop the application, with the intention of having a private company eventually take over the project. However, she has insisted that Carney must facilitate this by repealing several environmental laws enacted under Trudeau, including the tanker ban off British Columbia's northern coast. Dawn Farrell, CEO of the project office, informed a parliamentary committee last month that a decision on Alberta’s proposal could take four to five months to finalize.