Quebec Premier François Legault says there is “no social acceptability” in his province for a cross-country pipeline project such as the cancelled Energy East being heralded by his Alberta and Nova Scotia counterparts, but notes that could change.
The 4,600-kilometre pipeline was first proposed in 2013 as a way to convey crude oil from Alberta to an export terminal situated in Saint John, New Brunswick. The project was shelved by TC Energy in 2017, with the company citing regulatory hurdles as a deciding factor. If the pipeline was brought back to life, it would extend across six provinces, including Quebec.
Quebec’s stance on the project remains the same—at least for now, Legault said during a Feb. 3 press conference in Montreal.
“Of course the economy and what Mr. Trump is doing may change the situation in the future,” he said. “So if there’s a social acceptability, we will be open to these kinds of projects. But right now, there’s no social acceptability.”
His comments come at a time when the premiers of Nova Scotia and Alberta are appealing to Ottawa for approval of the long-stalled pipeline project, which they say is an essential measure to equip the country against future potential tariffs imposed by the United States.
Nova Scotia Premier Tim Houston and Alberta Premier Danielle Smith say the pipeline would strengthen Canada’s economy through the opportunity to export oil to countries beyond the United States.
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The construction of the pipeline and the diversification of Canada’s resource base would serve two purposes, Houston said at a press conference last week. It would send a strong message that Canada is not reliant on the Unites States as its sole customer while creating new opportunities abroad.
“A project like the Energy East would move resources from the west to the east, and then onto Europe,” he said. “It will open up incredible opportunities for our country.”
Smith said the oil industry is “dusting off proposals” for pipelines as a potential measure to address the threat of tariffs on Alberta’s oil exports to the United States.
“If we want to stop being so reliant on a single trading partner, we’ve got to take down internal trade barriers between Canadian provinces, start looking at how we can do major nation-building projects to our east and west coast,” she told reporters Jan. 21. “Why wouldn’t we talk about Energy East?”
Talk on Tariffs
U.S. President Donald Trump has given Canada a 30-day reprieve from his 10 percent tariff on oil and gas, as well as the 25 percent tax imposed on all other imported products.
The tariffs went into effect Feb. 1 as Trump promised but were put on hold after a deal was struck between the U.S. president and Canadian Prime Minister Justin Trudeau. Trudeau pledged to beef up Canada’s $1.3 billion border security plan with the appointment of a “fentanyl czar” to prevent cross-border drug trafficking. Trudeau also committed to classifying drug cartels as terrorist organizations and enacted a new intelligence directive focused on organized crime and fentanyl, supported by $200 million in federal funding.
The one-month pause is no guarantee that Canada will not be hit with tariffs in the future, Legault said during his press conference. He said the tariffs could still be slapped on Canada next month if Trump isn’t happy with Canada’s progress on border security.
Trump is also looking at implementing a broad range of tariffs against a number of countries, including Canada, in April. He has said there is a trade deficit between the two countries, singling out the dairy industry and auto manufacturing.
Legault said Canada is in a difficult situation with any type of potential projects aimed at diversification of the country’s natural resources because companies are afraid to invest when they are in the dark about America’s future tariff intentions.
Regardless, Legault said, Canada needs to push ahead by focusing on both diversification and productivity.
“We need to have diversification of markets so it includes working better with other provinces, but also with Europe, with other countries than the U.S.,” he said. “We also have to increase our productivity, because right now, my big fear is, when you compare Canada to the United States, there’s something like 30 percent difference for productivity. So we really need to work, all of us in Canada on our productivity.”
