Alberta and Ontario Sign Historic MOU for Energy Development and Cooperation on Critical Minerals and Supply Chains

This morning in Calgary, Alberta Premier Danielle Smith and Ontario Premier Doug Ford signed a historic collaboration agreement to get Ontario’s critical minerals and Western Canada’s oil and gas to new markets.

The Memorandum of Understanding (MOU) sets out the roles and responsibilities of Ontario and Alberta to advance the safe transportation, domestic access and use, and international export of oil and gas and domestically processed critical minerals. The partnership is intended to reduce energy dependence on foreign actors and regimes seeking to undermine security and democratic values; acknowledge mutual interest in attracting investment, building infrastructure, and enhancing export and value-added opportunities; and support made-in-Canada supply chains for resources.

This will be accomplished by the following areas of collaboration:

• New rail infrastructure to support critical mineral extraction in the Ring of Fire, including mining, processing, and refining capacity for an end-to-end Canadian supply chain, including access to Western ports.
• New oil and gas pipelines, including extensions and expansions of existing infrastructure between Alberta and Ontario refineries, seaports, and storage facilities, particularly in James Bay and southern Ontario. Ontario commits to supporting cross-country pipelines that connect Alberta oil and gas to new domestic and export markets beyond Ontario, and to help secure international buyers. Ontario also commits to considering the establishment of a Canadian Strategic Petroleum Reserve in Ontario with Canadian oil.
• Preliminary joint feasibility study to advance private sector-led investments in rail, pipeline, and port projects, and to maximize the economic benefit to Canada by using domestic supply chains, including Ontario steel and components.
• Sharing technology and expertise in small modular reactors (SMRs) and large-scale reactors to support new nuclear facilities in Ontario and Alberta that will meet existing and emerging grid needs as well as industrial requirements for power and thermal energy.
• Calling on the federal government to amend or repeal the Impact Assessment Act, the Oil Tanker Moratorium Act, Clean Energy Regulations, and the Oil and Gas Sector Greenhouse Gas Emissions Cap, to bring long-term investor certainty and market confidence to the sector.
• Identifying other federal barriers to project development and approvals, international investor confidence, productivity, and economic competitiveness. Also, advocating for federal funding commitments to support infrastructure projects.
• Indigenous participation and consultation in all activities, including equity partnerships and community benefits, such as labour force development and training, housing, and community infrastructure.
• Engaging other interested provinces, territories, and Indigenous communities to advance the objectives of the MOU.

Over the five-year term (with the option to extend for an additional five-year term), the provinces have committed to a Steering Committee that will help guide and implement activities supporting the outcomes prioritized in the MOU, and will be led by relevant Deputy Ministers from each province. The provinces have also committed to a joint study this year on new infrastructure development and to support Canadian supply chains, including domestic steel.