The Alberta government has announced a strategic partnership with Enbridge Inc., a Calgary-based pipeline company, to enhance the province’s oil and gas pipeline capacity. This collaboration is aimed at increasing the efficiency and capacity of Alberta's energy exports to the United States. The partnership will begin with the creation of a formal working group that will include Enbridge and the Alberta Petroleum Marketing Commission (APMC), a Crown corporation responsible for managing the province's oil and gas sales.

Premier Danielle Smith revealed that the working group will focus on streamlining the regulatory processes and permitting approvals that often delay energy projects. By cutting through red tape and enhancing the approval process, the government and Enbridge aim to expand the capacity of the existing pipeline network. Enbridge already operates an extensive 29,000-kilometre pipeline network, which stretches across North America, and the province is keen to expand opportunities along these existing pipelines to increase oil and gas flow.

This initiative is part of Premier Smith’s broader energy strategy under the United Conservative government, which includes a goal to double Alberta’s oil production and increase exports to the U.S. The government has long sought to boost Alberta's economic standing by increasing the flow of oil and gas to international markets, especially to the United States, which is Alberta's largest trading partner. According to Premier Smith, the plan is not to invest taxpayer dollars directly into pipeline projects. Instead, the province plans to leverage its oil and gas resources, paid to the government in-kind rather than in financial royalties, to guarantee pipeline capacity.

By using oil and gas revenues in this way, Alberta aims to ensure that its energy products have access to global markets, including the U.S., without the financial burden typically associated with large infrastructure investments. Smith emphasized the province’s responsibility to ensure market access for its oil and natural gas, which plays a crucial role in the broader North American energy sector. Alberta’s energy exports are already substantial, with the province exporting over 4.3 million barrels of crude oil per day to the U.S.

The decision to guarantee pipeline capacity in exchange for in-kind oil and gas payments is an innovative approach to addressing the province’s infrastructure challenges. By making use of Alberta's energy resources rather than tax-funded investment, this plan aims to provide greater flexibility and ensure that the province’s oil can reach markets as efficiently as possible. Premier Smith also pointed out that ensuring sufficient pipeline capacity is a critical factor in the long-term economic prosperity of the province, especially as global demand for energy continues to grow.

This move comes at a time when the Alberta government is under pressure to ensure that its energy sector remains competitive in the face of growing environmental concerns and international competition. While Alberta continues to be a major player in global oil markets, ensuring infrastructure capacity and market access are key to maintaining its competitive edge.

The announcement, which was first published by The Canadian Press on January 6, 2025, marks a significant milestone in Alberta’s energy strategy, one that aims to balance economic growth with long-term sustainability.