Ottawa, British Columbia Sign Multibillion Dollar Prosperity Deal as North Coast Oil Tanker Ban Remains in Place

The federal and British Columbia governments have announced a multibillion dollar economic partnership that will invest in major transportation, energy and resource projects across the province while reaffirming that the federal ban on oil tankers along British Columbia’s North Coast will remain in force.

Prime Minister Mark Carney and British Columbia Premier David Eby unveiled the Canada British Columbia Cooperative Prosperity Agreement in Vancouver, describing it as a long term strategy to strengthen trade infrastructure, support economic growth and expand Canada’s access to international markets.

A key element of the agreement is Ottawa’s commitment to maintain the North Coast oil tanker ban, a decision that effectively limits the possibility of a future oil export terminal in the region despite Alberta’s continued interest in building a new pipeline to British Columbia’s northern coast.

The tanker moratorium has long been supported by environmental organizations and Indigenous communities that argue an oil spill would pose significant risks to one of Canada’s most ecologically sensitive marine environments. Alberta, however, has promoted the North Coast as an attractive export route because of its proximity to Asian markets and the availability of deep water ports.

Speaking during the announcement, Carney said British Columbia serves as Canada’s gateway to global trade and plays a vital role in building a stronger, more sustainable national economy. He described the agreement as an ambitious partnership designed to create long lasting economic opportunities while protecting the province’s environmental assets.

Premier David Eby called the agreement a landmark investment that will benefit future generations by supporting economic development while preserving British Columbia’s environmental priorities.

The announcement came just hours before Alberta Premier Danielle Smith was expected to provide an update on her government’s proposed one million barrel per day oil pipeline to British Columbia’s coast. Alberta had recently submitted its proposal to the federal Major Projects Office as part of efforts to diversify Canadian energy exports.

Although the tanker ban remains in place, Eby acknowledged that British Columbia does not have the constitutional authority to block an interprovincial pipeline project approved by the federal government. He said the province would not challenge such a project in court but emphasized that British Columbians must receive fair compensation for assuming environmental risks if a pipeline proceeds.

Under the memorandum of understanding signed by Ottawa and British Columbia, the province would share in the economic benefits generated by any future pipeline through measures that could include annual royalty payments and the creation of an environmental response fund. The agreement also recognizes Canada’s interest in expanding the capacity of the existing Trans Mountain Pipeline, increasing daily throughput from approximately 890,000 barrels to 1.2 million barrels.

The federal commitment to preserve the North Coast tanker ban was welcomed by the Coastal First Nations Great Bear Initiative, an alliance representing Indigenous communities along British Columbia’s northern coastline. The organization has consistently opposed oil tanker traffic in the region and has vowed to continue protecting the Great Bear Sea from oil transportation projects.

Marilyn Slett, elected Chief of the Heiltsuk Nation and president of the Coastal First Nations Great Bear Initiative, described the federal announcement as an important victory. She said the alliance remains committed to preventing oil tankers from operating along the North Coast while continuing to work with governments on economic development projects that respect Indigenous rights and environmental protection.

Beyond energy policy, the agreement includes major infrastructure investments aimed at improving Canada’s trade network.

Ottawa will provide 10 billion dollars to expand the Roberts Bank Terminal at the Port of Vancouver, a project expected to increase shipping capacity and reduce delays for Canadian exports heading to international markets.

An additional three billion dollars has been committed toward replacing the George Massey Tunnel in Metro Vancouver. The existing four lane crossing on Highway 99 will be expanded to eight lanes to improve traffic flow and strengthen freight transportation throughout the Lower Mainland.

The agreement also includes investments to strengthen the ports of Prince Rupert and Stewart, supporting their role as strategic gateways for Canadian exports, including critical minerals and other natural resources.

Further funding will support the expansion of the Red Chris copper mine in northwestern British Columbia, continued development of the North Coast Transmission Line to deliver electricity to major industrial projects, growth of the province’s liquefied natural gas export sector, expansion of wind turbine manufacturing, and enhanced protection measures for British Columbia’s endangered orca populations.

The Canada British Columbia Cooperative Prosperity Agreement represents one of the largest joint infrastructure and economic development initiatives announced by the two governments in recent years, combining major investments in transportation, energy and natural resources with commitments aimed at balancing economic growth and environmental stewardship.

Courtesy: CBC