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Smith says Alberta gas-pipeline Crown corporation is unlikely

KCJ Media Group staff

September 15, 2026 at 7:39:24 a.m.

Smith says Alberta gas-pipeline Crown corporation is unlikely

Alberta News

Premier Danielle Smith says Alberta is unlikely to create a Crown corporation to expand natural-gas pipelines, despite a leaked cabinet report that described transmission constraints and possible government intervention.


Smith said during her provincewide radio program Saturday that the government has heard from dozens of companies having difficulty securing natural-gas access.


She said discussions are focused on private-sector solutions and that there appears to be enough commercial interest to add capacity without a new provincial corporation.


The statement narrows the government’s preferred direction, but it does not settle how new pipelines would be financed, regulated or built.


The leaked report recommended legislation and two Crown corporations to spur new transmission lines. It estimated the corporations could cost between $53.9 million and $162.6 million, while a major new pipeline could cost billions of dollars.


Those figures come from internal advice reported by The Canadian Press. They are not an approved budget, final project estimate or commitment to proceed.


The report identified NOVA Gas Transmission Ltd., known as NGTL, as the central constraint. The system carries natural gas across Alberta and northeastern British Columbia and connects producers with domestic and export markets.


According to the reported cabinet advice, NGTL is expected to operate at full capacity until 2029 and has limited expansion planned after 2030.


TC Energy owns and operates NGTL. The company did not respond to questions for the cited report before publication.


Smith said the province has been talking with TC Energy and other private companies about adding competition and moving more gas to users.


Natural-gas transmission capacity affects more than producers.


Gas supplies homes and businesses, fuels industrial plants and generates a significant share of Alberta’s electricity. Proposed artificial-intelligence data centres could add large new loads if developers build their own gas-fired power plants or rely on the provincial grid.


Oil sands operations also use natural gas. Constraints can prevent gas from reaching new industrial customers even when the province has abundant production.


Adding pipeline capacity could support development and improve prices received by producers. It could also expose Alberta consumers to higher commodity prices if local gas becomes better connected to higher-priced markets.


The leaked report raised both possibilities. It said improved transmission could increase provincial royalty revenue while also contributing to higher household power costs.


Smith argued that increasing supply to users is the best protection against higher bills when demand grows.


Those effects cannot be measured from the leaked recommendations alone. Consumer costs would depend on the design, financing and tolls of any new line, the amount of new production, weather, electricity demand and market prices outside Alberta.


The report also proposed legislation that could change existing arrangements among pipeline companies and compel investment in projects considered to be in the provincial interest.


Smith did not rule out legislation. Any bill would require public text, legislative debate and legal review before its practical effect could be assessed.


A Crown corporation can allow a government to build when private investors will not, but it can also place construction, market and financing risk on taxpayers. A private project limits direct public ownership but may still seek long-term contracts, regulatory approval or government support.


No pipeline route, capacity, completion date or financing structure has been approved in connection with the leaked report.

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