This article was written by Stephanie Levitz and Laura Stone, and was published in the Globe & Mail on November 29, 2025.
Premier says pipeline to the province’s northwest coast is never going to happen
Natural Resources Minister Tim Hodgson travelled to British Columbia Friday for a meeting with Premier David Eby, who continued to express frustration over his province’s exclusion from negotiations for the landmark deal Ottawa signed with Alberta.
The political fallout from the memorandum of understanding signed Thursday also continued internally for Liberals after the sudden resignation from cabinet of long-time environmentalist Steven Guilbeault.
Mr. Guilbeault, in charge of the heritage portfolio, told Prime Minister Mark Carney he was leaving the job hours after the MOU was unveiled, and sent a letter sharply criticizing the new memorandum of understanding with Alberta.
Among other things, it removes the oil and gas emissions cap, suspends clean electricity regulations, and lays out a framework to get a new pipeline built from Alberta to B.C.’s northwest coast. For that, the government would provide an exemption to the oil tanker ban to allow the bitumen to ship to Asian markets.
In exchange, Alberta will strengthen its industrial carbon pricing system and both levels of government will forge ahead with a major carbon capture and storage project to reduce emissions.
B.C. was not at the table for discussions on the MOU, prompting anger from the Eby government.
The agreement itself says there would be trilateral discussions on the pipeline, as well as consultation with First Nations and the pipeline would have Indigenous co-ownership.
But Mr. Eby said Friday the pipeline is never going to happen, citing the lack of a proponent and the objections of Coastal First Nations.
So, he said, the message he was going to deliver to Mr. Hodgson is simple: The pipeline proposal can’t be allowed to take federal attention away from shovel-ready projects in B.C. that already have provincial buy-in, First Nations support and a financial plan.
“The federal government needs to be extremely careful to make sure that their efforts with Alberta don’t put those projects at significant risk,” he told reporters at an unrelated announcement in Surrey, B.C., on Friday.
Alberta Premier Danielle Smith called the agreement a “clear win.”
“There’s no doubt David Eby is not a fan of it, as you probably heard,” she told party members at their Edmonton convention.
“But I think it’s not his decision, it’s the federal government’s decision.”
Mr. Hodgson apologized late Friday for comments he made in a CBC interview. When asked on Thursday about ensuring the Coastal First Nations, who oppose a pipeline, could attend a meeting about the issue, he replied: “It’s called Zoom.”
In a Friday post on X, he said it was a poor choice of words and he reached out to apologize to the First Nations, whom he looks forward to meeting in person.
B.C. Liberal MP Wade Grant, who is a member of Musqueam Nation, said his province’s priorities must be central to the discussion. “I remain concerned about any potential impacts to our coastal and inland environments, and I will continue to advocate for the strongest safeguards possible,” he wrote in a statement on social media.
Cabinet ministers were asked Friday whether Mr. Guilbeault’s decision to quit cabinet – he is staying in caucus – will send a negative signal about the party’s commitment to combatting climate change.
Finance Minister François-Philippe Champagne said the MOU showed climate is still a priority.
“I think what you saw yesterday was kind of a road map where you have a number of conditions to make sure that Canada can be a responsible and sustainable energy producer,” he told reporters at an event in Halifax.
When asked whether he was concerned anyone else might resign, he said: “No, I’m not.”
Toronto MP Rob Oliphant, parliamentary secretary to the minister of foreign affairs, said Mr. Guilbeault was a valued member of the party, and both he and the government had tough choices to make. “We have to change the narrative that Alberta doesn’t belong in the country,” he said in an interview.
“Does it mean that we give up on our environmental agenda? Never. This is an existential crisis.”
Kevin Bosch, a lobbyist and former senior Liberal staffer who hails from Alberta, said he believes Liberals are unified behind Mr. Carney.
“I think they’re grateful for the work that Steven Guilbeault did but understand that this new prime minister is going in a different direction,” he said.
Mr. Guilbeault’s departure opens up room for a cabinet shuffle, and Mr. Bosch said while it is possible the gap is filled temporarily, he believes there will be a larger shuffle before Christmas.
He noted that House Leader Steven MacKinnon has also taken on transport and Dominic LeBlanc holds several portfolios, including internal trade.
“Carney is known as a prime minister who rewards those who can deliver, and so he may do some shuffling based on who’s impressed him,” he added.
“We know Carney is the consummate manager, and so those who perform are rewarded and those who are not might get shuffled out. That’s the way it is.”