Ontario and Alberta have outlined the proposed route for the Northern Shield Energy Corridor, a plan centred on a new crude oil pipeline connecting Hardisty, Alberta, to Sarnia, Ontario.
Under the current proposal, the corridor would extend for approximately 3,300km and be constructed entirely within Canadian borders.
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The proposed pipeline is forecast to transport around 500,000 barrels of crude oil per day (bopd) for domestic use and export markets. It also has the potential to expand further to 800,000bopd.
The provinces framed the project as a way to increase crude supply into Sarnia’s refining system and add redundancy to existing infrastructure.
Ontario Premier Doug Ford said: “Our plan to build the Northern Shield Energy Corridor is a plan to protect workers in Ontario, Alberta and every part of the country.
“We are going to keep working to build a more secure, united and resilient Canadian economy, so we can keep Canadian workers on the job, make life more affordable for Canadian families and help get Canadian energy to new markets across the country and around the world.”
Sarnia has been identified as the proposed terminus because it has refining capacity serving the Ontario market and links to existing energy and shipping infrastructure.
In addition, Ontario is examining potential pipeline extensions to new and existing ports, including options intended to move crude to tidewater for export markets.
The proposed alignment also provides the Government of Manitoba and the Manitoba-Crown Indigenous Corporation with an opportunity to explore the viability of an extension to the Port of Churchill.
As part of the broader corridor work, Ontario is exploring a potential strategic petroleum reserve and other related development opportunities including grid upgrades.
The corridor study follows a memorandum of understanding between Ontario, Alberta and Saskatchewan focusing on collaboration around energy and trade infrastructure.
Ontario has initiated work to determine project costs and commercial structures, and has begun its formal duty to consult with indigenous partners and communities.
Funding is being allocated to allow indigenous communities to explore equity participation in the corridor’s development. The feasibility study for the Northern Shield Energy Corridor is scheduled for completion by the end of this year.
