Ontario Seeks Bids on Feasibility Study for New East-West Pipeline, James Bay Port

Pipes are seen at the Kinder Morgan Trans Mountain facility in Edmonton, Alberta, on April 6, 2017. Jonathan Hayward/The Canadian Press

Ontario is seeking bids on a feasibility study for a new East-West energy corridor that will include Alberta-to-Ontario pipelines and a deep-sea port on the coast of James Bay.

The province issued a request for proposals on Aug. 7 for a feasibility study for a new energy corridor that would bring Western Canadian oil and gas to refineries in southern Ontario and tidewater ports through pipelines made in Canada using Ontario and Canadian steel.

The move follows a memorandum of understanding (MOU) between Ontario, Alberta, and Saskatchewan that was signed last month, which marked an agreement between the provinces to build new pipelines, rail lines, and other energy and trade infrastructure needed to deliver Ontario critical minerals and Western Canadian oil and gas to new markets.

Ontario Premier Doug Ford said building infrastructure across the country is necessary to “protect our energy security, find new markets for Canadian energy and resources and create new jobs and opportunities for Canadian workers,” especially amid an uncertain trade relationship with the United States. The new pipelines intend to reduce Canada’s reliance on the United States.

“The last few months have shown that Canada can no longer rely on energy infrastructure that lies outside of our borders and can be shut down at a moment’s notice by another country,” Ford said in an Aug. 7 news release.

Ontario Infrastructure Minister Kinga Surma said it’s important for Canada to work together across governments to “unlock new markets domestically and protect jobs” in the face of U.S. tariffs, through nation-building projects and partnerships.

Alberta Premier Danielle Smith said the pipelines will help Alberta oil and gas reach markets across Canada as well as global markets, calling it a potentially “defining moment” for the country.

“Alberta is proud to partner with provinces that share our bold vision for a stronger, more self-reliant Canada,” Smith said in the statement.

Saskatchewan Premier Scott Moe noted that his province exports 70 percent of the goods it produces, making global markets key to strengthening the economy. He echoed the importance of building energy corridors for energy security and jobs for Canadians.

The feasibility study will also look at the practicality of a new port on James Bay, Hudson Bay, and the Great Lakes, and the possibility of a new or expanded refinery along the pipeline route.

Ontario said the study will also consider the benefits of establishing a petroleum reserve because Canada is one of few International Energy Agency members without a federally administered strategic petroleum reserve, leaving Canada vulnerable to various disruptions in energy supply. The reserve would act as an emergency stockpile of petroleum that the province could use in the case of an emergency to limit service interruptions.

Manitoba’s Port of Churchill

While Manitoba signed agreements with four other provinces to reduce trade barriers, the province did not sign the pipeline MOU that Ontario, Alberta, and Saskatchewan signed on July 22. However, Manitoba Premier Wab Kinew has appeared supportive of making the Port of Churchill a key shipping hub.

During a call with the premiers and Prime Minister Mark Carney in May, Kinew promoted building a “northern trade corridor” through the Port of Churchill in northern Manitoba’s Hudson Bay.

Kinew highlighted the port as an opportunity for the Western provinces to get agricultural, mineral, and energy products to other countries. The premier said he was working with First Nations to see what the “appetite” was for shipping products through the port.

The Port of Churchill is Canada’s only deep-water Arctic port that is connected to the North American surface transportation network. The port was once an important shipping route for grain, but a costly flood in the 2010s led to the port’s closure and the sale of the Hudson Bay Railway.

Ontario, however, turned to economic opportunities in its own north in July by looking at developing a new deep-sea port in James Bay, which is on the southern end of Hudson Bay and is part of Nunavut and borders Ontario and Quebec.

Ford’s recent push for developing the proposed port came amid the new national focus on building major projects, and as the federal government introduced the One Canadian Economy Act, which recently became law. The legislation aims to speed up the development of major projects that are deemed of national interest, including pipelines, ports, and railways

Matthew Horwood and Paul Rowan Brian contributed to this report.