432-00585 (Natural resources and energy)

The Government of Canada thanks the petitioners for expressing their views regarding a west-east energy corridor.

Canada maintains a market-based energy policy that relies on the private sector to decide when and where energy projects should be brought forward. TC Energy’s withdrawal of its application to review the proposed Energy East pipeline in 2017 was a business decision. Project proponents develop their applications in a business environment where market factors, such as supply, demand and both product and transport prices are constantly changing.

At this time, there is no project application to build a west-east crude oil pipeline. If a new proposal is put forward, federal regulators will provide a fair and rigorous review process. The Government of Canada will consider whether to approve a project once the review is complete and public and Indigenous consultations have concluded.

While Canada has the third-largest proven reserves of crude oil in the world, some refiners in central and Eastern Canada do import a portion of their crude oil inputs under certain circumstances. Refiners are therefore not dependent on pipeline access for heavy crude oil producers in Western Canada. This is due to several factors. Regional refinery specialization, for instance, influences the decision to import lighter crude oil. Nearly three-quarters of Canada’s crude oil imports come from the United States due to a highly integrated energy market.

The government is taking action to make Canada a more attractive place to invest and do business. However, it does not intend to pursue the construction of an energy corridor ahead of market factors. Pipeline and transmission line companies are already using a corridor approach. They are taking advantage of existing utilities, rails, and road corridors. This minimizes the impact on the environment and communities, and facilitates regulatory approvals. There are multiple factors to consider in evaluating the feasibility of an energy corridor, including impacts on Indigenous communities and landowners, environmental impacts, as well as costs and timelines.

The Government of Canada remains firmly committed to supporting the competitiveness of the energy sector by working with federal and provincial counterparts, industry and other parties. The government is actively identifying both the barriers facing Canada’s oil and gas sector. It is also considering future growth opportunities to connect Canada’s resources to new markets. This is why the government continues to support key infrastructure projects such as the Trans Mountain Expansion project, LNG Canada and Line 3, while ensuring worker safety in light of the COVID-19 pandemic. The Government of Canada is taking action to set up the energy sector for success today, and help prepare it for an increasingly low carbon future.