Prime Minister Mark Carney and Alberta Premier Danielle Smith have reportedly reached a pipeline deal, according to CBC News. The agreement, as reported, secures political backing for a new oil pipeline to the B.C. coast, granting Alberta exemptions from federal environmental rules.

The deal will be formally announced by Carney and Smith in Calgary on Thursday. It is contingent on Alberta adopting stricter industrial carbon pricing and a multibillion-dollar carbon capture investment from the oilsands' Pathways Alliance, sources told CBC.

The federal government wants Alberta to improve its industrial carbon capture and commit to the Pathways project, a proposed 400-kilometre pipeline to sequester oilsands greenhouse gases from Northern Alberta underground. 

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The historic pipeline agreement is expected to begin mending the long-strained relationship between the two governments. 

Alberta will reportedly receive exemptions from federal "net-zero" electricity rules in exchange for a stronger industrial carbon price, according to the state broadcaster. This follows the recent federal budget outlining adjustments to Competition Act rules targeting "greenwashing," which Alberta and industry groups want repealed.

Premier Smith says her government is "very close" to agreeing with the Carney Liberals on a "pathway" that would lead to a new pipeline being built in Alberta.

The premier previously stated Carney's anti-energy policies could spark a "national unity crisis". pic.twitter.com/Cwn1OKL0MH

— Rebel News (@RebelNewsOnline) November 19, 2025

The energy accord is anticipated to outline a route for an Alberta to northwest B.C. oil pipeline and grant exemptions to the oil tanker ban between northern Vancouver Island and the Alaska border, as reported by CBC News and others. 

The MOU would also include terms on Indigenous ownership, equity, and tripartite engagement with B.C.

B.C. Premier David Eby reported speaking with the Prime Minister Monday morning, who indicated the pipeline deal details were not finalized.

After Smith mentioned the MOU during a November 19 press conference, Natural Resources Minister Tim Hodgson stated the federal government supports a new oil pipeline to the west coast, but only with B.C.'s approval. 

Hodgson's office confirmed that while the government won't grant B.C. a pipeline veto, it "strongly prefers" new pipelines to have B.C.'s support, especially for projects seeking fast-track "national interest" approval.

Carney comments on negotiations with Alberta after the Liberals' released their list of nation-building projects, which did not include an oil pipeline as Premier Smith requested. pic.twitter.com/NYVqkdEGNH

— Rebel News (@RebelNewsOnline) November 14, 2025

The Major Projects Office (MPO) fast-tracked two B.C. LNG projects (Ksi Lisims LNG and an expanded LNG Canada in Kitimat) this fall but approved no oil pipelines. Hodgson noted that a new oil pipeline needs MPO review and faces opposition from Eby and local First Nations, as it requires lifting the regional oil tanker ban.

When asked by a parliamentary committee on Monday if the government would exempt the tanker ban, Hodgson stated, "We have been clear with proponents. If they have support of First Nations and jurisdictions, we will work with them to clear whatever barriers there are."

Earlier this month in Toronto, Carney gave the strongest hint yet that talks with Alberta could lead to a new oil pipeline. Referring to "the pipeline stuff," Carney quipped, "Don't worry, it's going to happen [...] Well, something's going to happen. Let's put it that way."

Meanwhile, Alberta committed $14 million last month for early regulatory work on a hypothetical west coast pipeline, aiming to attract private investment and First Nations ownership.

Smith earlier stated that the status quo was untenable given the escalating tensions between Alberta and Ottawa.

She revived those concerns on Nov.19. “I’ve had a chance to talk to the prime minister about this, and we need to show Albertans this country works again.”

In July Carney told reporters his government was eyeing a new oil pipeline to the West Coast among “national interest” projects, stating: “It’s highly, highly likely that that will be the case.”

Parliament passed Bill C-5 on June 26, granting cabinet authority to fast-track industrial projects deemed "in the national interest." However, no pipeline project is currently under consideration.