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Ford Pledges Ontario Money for Northern Shield Pipeline

Ottawa is weighing a federal listing for a West Coast oil pipeline while Premier Doug Ford pledges Ontario capital for a separate project, Northern Shield. The 3,300-kilometre line would run through Regina and Winnipeg, and a feasibility study is due by the end of 2026.

·By ·3 min read
Ford Pledges Ontario Money for Northern Shield Pipeline
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Ottawa has given notice that it may list a West Coast oil pipeline, and Ontario Premier Doug Ford has now pledged provincial money to a separate line called Northern Shield. Together the two moves show where pipeline politics stand heading into the fall.

What Ford promised

Ford made his funding pledge on Monday in Calgary, alongside Alberta Premier Danielle Smith, at an energy-services industry event. He described Ontario as a minority investor rather than the sole backer of Northern Shield. How much money Ontario would put in was not part of the reporting we drew on, so the size of the provincial stake is not yet known.

The route and the numbers

The 3,300-kilometre Northern Shield line would pass through Regina and Winnipeg, with a possible extension to the Port of Churchill in Manitoba. It could grow from an initial 500,000 barrels a day to 800,000.

Ford and Smith suggested construction could take under five years. That is a suggestion, not a schedule: no construction timeline has been formally set.

What happens next

The provinces say an Ontario-led feasibility study will be finished by the end of 2026. Only then will they decide whether to proceed and submit the project to the Major Projects Office. In other words, nothing is approved, and the pledge comes before the study that is meant to show whether the line makes sense.

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The federal side

The federal government in Ottawa gave notice in the Canada Gazette on Aug. 1 that it may list a separate West Coast line. That pipeline would carry one million barrels a day from Bruderheim, Alta., to a port near Delta, B.C.

The two projects are distinct. The West Coast line is the one Ottawa has put on notice, while Northern Shield is the provincially driven proposal Ford and Smith are backing.

A history of pipelines that did not get built

Canada's recent record on big oil pipelines is mixed at best. Northern Gateway, a $7.9-billion line for 525,000 barrels a day to Kitimat, was rejected by the federal cabinet in 2016. Energy East, a $15.7-billion proposal to move more than one million barrels a day eastward, was abandoned by TransCanada in 2017.

That history is the backdrop for Ford's pledge. Northern Shield, with provinces as investors and a feasibility study still to come, is being pitched as a different route to the same goal.

What it means for Ontario and Ottawa residents

The pledge involves Ontario capital, which means provincial money, and so provincial taxpayers, are part of the conversation. Because the amount has not been announced and the study is not finished, there is no cost to residents to point to yet. The next real checkpoint is the end of 2026, when the provinces say they will decide whether to move ahead.

Sources: The Hub

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