Minister of Energy, Hon. Tim Hodgson signs pipeline in Prince George B.C.
FORT McMURRAY — Canada’s energy minister says Ottawa is moving to get major energy projects built while seeking new international customers for Canadian oil and gas as the country looks to reduce its dependence on the United States.
Tim Hodgson visited Fort McMurray to tour the oilsands, marking the first visit by a federal minister to the oilsands in more than a decade.
The visit comes as Prime Minister Mark Carney’s government seeks to diversify Canada’s trading relationships in the wake of unprecedented U.S. tariffs and an escalating trade dispute with Canada’s largest trading partner.
In an interview with Harvard Media, Hodgson said energy and natural resources have become increasingly important as Canada navigates the dispute.
“We understand we are in a trade war,” Hodgson said. “Our very best cards are our energy and natural resources.”
Hodgson said the federal government is focused on increasing Canada’s energy and critical minerals capacity while finding customers beyond the United States.
“As the prime minister has said, we need to sell our energy and natural resources to all of our allies, not just the one we share a border with,” he said.
Hodgson pointed to several projects he says demonstrate development is already moving beyond the planning stage.
“Taylor to Gordondale diluent pipeline, shovels in the ground today,” Hodgson said. “The $4-billion expansion of the Sunrise pipeline system, shovels in the ground today.”
He said work is also underway to optimize the Trans Mountain pipeline system to add another 300,000 barrels of capacity.
Hodgson said Ottawa is also working toward getting a proposed new one-million-barrel-per-day pipeline to the West Coast listed by Oct. 1.
“We’re focused on building,” he said.
The minister said the changing international trade environment is creating opportunities to find new markets for Canadian energy.
Hodgson pointed to European utilities signing agreements for Canadian liquefied natural gas, along with investments by companies including Pembina, Enbridge and Shell.
“We’ve got customers pounding on the door as I go around the world, whether it’s Japan or India or Europe,” Hodgson said. “What I hear over and over again is people want what we have. They know we are a reliable supplier.”
Hodgson said international customers also recognize Canada will not use energy as a tool of coercion and said Canadian oil and gas production benefits from environmental standards and partnerships with Indigenous Peoples.
The federal government has also been working to accelerate the regulatory process for major projects.
Hodgson pointed to the Build Canada Act and Ottawa’s work with provinces toward a “one project, one review” approach.
He cited the approval of an LNG project in British Columbia as an example, saying provincial approval was followed by federal approval about 30 minutes later.
Hodgson said Ottawa sees further oilsands development proceeding alongside efforts to reduce the industry’s environmental impact, including carbon capture, utilization and storage.
He said the federal government’s agreement with Alberta envisions oilsands growth and emissions-reduction projects moving forward together.
“What this government is doing is it’s supporting the growth of the oil sands in an environmentally responsible way, and it’s bringing all of Canada along,” Hodgson said.
“Team Canada is with the oil sands today.”
Hodgson said growing Canada’s energy sector would benefit both Alberta and the country as Ottawa works to strengthen the domestic economy and expand access to markets outside the United States.
“We’re seeing support for the growth of our energy sector at highs across the country,” he said. “And that’s good for Alberta. That’s good for Canada.”
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