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Or sign-in if you have an account.Alberta Premier Danielle Smith speaks at a press conference with Ontario Premier Doug Ford on July 6, 2026. Dean Pilling/PostmediaAt first glance, Ontario Premier Doug Ford’s new pipeline plan sounds like something good. Rather than relying on routes that pass through the U.S., let’s protect Ontario’s fossil fuel supply by building a pipeline across our own country to supply refineries in Ontario. That would avert the threat of the Americans cutting off Ontario’s supply.Enjoy the latest local, national and international news.Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events.Unlimited online access to National Post.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles including the New York Times Crossword.Support local journalism.Enjoy the latest local, national and international news.Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events.Unlimited online access to National Post.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles including the New York Times Crossword.Support local journalism.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorDig a little deeper, though, and one quickly discovers that the American threat isn’t much of a threat and the cost of the pipeline that Ford and Alberta Premier Danielle Smith are proposing would vastly exceed any imaginable benefit.That’s not the only deficiency in Ford’s Northern Shield Energy Corridor plan, which also proposes shipping Ontario minerals west via the same route. There is no obvious demand for this oil pipeline. Ontario’s oil refineries are not clamouring for a new source of oil and, even if they were, they don’t have the capacity to handle all the proposed flow from Northern Shield.This newsletter from NP Comment tackles the topics you care about. (Subscriber-exclusive edition on Fridays)By signing up you consent to receive the above newsletter from Postmedia Network Inc.We encountered an issue signing you up. Please try againLet’s start with the “threat.” Pipelines owned by Canadian company Enbridge supply crude oil, mostly from Alberta, for the handful of Ontario refineries in Sarnia.Part of the pipeline crosses U.S. soil and passes under the Straits of Mackinac, a narrow channel that connects Lake Michigan and Lake Huron. In 2020, Michigan Governor Gretchen Whitmer tried to shut down the pipeline over perceived environmental risks. That move was later blocked by a U.S. court, which said pipelines were a matter of federal jurisdiction. The legal dispute is not yet fully resolved, but shutting down the pipeline would be a self-destructive move for Michigan.The Americans need Canadian oil and even Michigan is heavily dependent on the Enbridge pipeline, which also supplies most of the state’s propane. The Donald Trump administration has sided with Enbridge. The pipeline is not a factor in the continuing trade dispute with the Americans. Despite Whitmer’s environmental grandstanding, the political risk to the Enbridge pipeline is negligible.Enbridge has proposed a $500-million tunnel under the straits to address the governor’s environmental objections.The pipeline plan Ford and Smith presented this week doesn’t have a price tag. It’s too early for that, as Ontario is still conducting a feasibility study. So far, the study has cost $11 million and results are expected by the end of the year.Nevertheless, one can certainly make a reasonable estimate. For comparison, look at the federal government’s proposed new pipeline to connect Alberta to the Pacific Coast around southern B.C. The projected cost is between $35.2 billion and $43.7 billion for the 1,250-kilometre pipeline. The federal and Alberta governments will cover 90 per cent of the cost.The pipeline Ford is championing would be 3,300 kilometres long. Based on the cost of the other pipeline, the Ford pipeline would certainly cost not less than $100 billion, and there is currently no private sector partner offering to back it.Ford is apparently quite willing to use Ontario taxpayers’ dollars to pay for his pipeline dream, even though benefits in his own province would be negligible. Ford told reporters this week that “We won’t hesitate to do what the government of Canada and Alberta (are) doing.” In other words, pay almost all the cost.Ford called the pipeline “a great investment.” It’s difficult to imagine a worse one. The only Ontarians who would benefit are those who work in steel plants that produce pipes.Unlike the federal government, which bought Trans Mountain Corp. in 2018 and will use it to build the West Coast pipeline, Ontario does not happen to own a pipeline company. Ford said he’s not opposed to taking on a private sector partner, but why would any be interested, with no obvious demand for the pipeline?Ontario refineries can handle just over 400,000 barrels of crude a day, sufficient to meet most of Ontario’s fuel needs. And yet, Ford imagines a new pipeline with a capacity of 500,000 barrels a day and the potential for expansion to 800,000 barrels. Ontario has neither the refining capacity nor the need for such a pipeline.Why would Ontario’s refineries, all owned by private corporations, stop doing business with Enbridge and switch to the government pipeline?The Northern Shield pipeline plan offers no new export markets, unlike the Alberta-B.C. link to supply Asian markets that the federal government is pushing. The feds were decidedly cool on the Ford-Smith plan, and for good reason. It’s just not needed. Don’t look for federal help to build it.Even for Alberta, the benefit is unclear. Most of Ontario’s oil is sourced from the western province as it is. Maybe the new pipeline would boost its share marginally, but certainly not enough to justify the cost.Ford likes to be a player on the national stage, sometimes to good effect, but this is not one of those times. Interprovincial pipelines are the federal government’s jurisdiction, not the responsibility of Ontario taxpayers.Ford’s pipeline plan is a bad idea by any rational measure. Even the 50-kilometre-long tunnel the premier imagines running under Highway 401 addresses a real problem in Ontario. The pipeline plan fails to meet even that basic test.Randall Denleyrandalldenley1@gmail.com Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.
Randall Denley: The Ontario-Alberta oil pipeline proposal isn't helping
It doesn't address a real problem, pipelines aren't the province's jurisdiction, and the cost to Ontario would be eye-watering.














