Natural Resources Minister Tim Hodgson briefed B.C Liberal MPs Wednesday on the content of Ottawa’s forthcoming memorandum of understanding with Alberta — an agreement that has rattled some politicians even before it has been released publicly.
A government source told CBC News that Hodgson had a “good” and “substantive” discussion with the caucus, some of whom have said they are skeptical of building a new pipeline to the Pacific.
The meeting was lengthy as the minister fielded questions about what exactly Ottawa is proposing for Alberta — and what sort of commitments the federal government will get in turn, the source said.
Hodgson told reporters after leaving the larger national caucus meeting that he had “a very good conversation” about what’s to be delivered in Calgary on Thursday alongside Alberta Premier Danielle Smith.
One B.C. MP inside the room, however, described the meeting with the minister as quite candid and at times tense, saying Hodgson seemed dismissive of the possible political consequences for Liberal MPs in B.C.
Hodgson used words like “naive” and “ideological” when responding to MP concerns, the parliamentarian said.
Another MP described the briefing as useful — and something that should have been done earlier than the day before the details are to be revealed publicly.
B.C. Liberal MP Wade Grant, the parliamentary secretary to the environment minister, was noncommittal on the prospect of Ottawa sanctioning an oil pipeline to northwest B.C. despite the Trudeau-era tanker ban.
“I know that as a First Nations person that the title and rights of First Nations and Indigenous communities are of the utmost importance, and to ensure that as much consultation and agreement with First Nations is the most important for anything to go forward,” he said.
Asked if he supports a pipeline like the one Smith has lobbied to get built, the Vancouver MP said he would confer with constituents before taking a stand.
Could a pipeline cost the Liberals B.C.?
The Coastal First Nations, an anti-oil development group in B.C., released a statement Wednesday saying it is diametrically opposed to a new pipeline that could lead to spills, and it will fight it tooth and nail.
“We are here to remind the Alberta government, the federal government and any potential private proponent that we will never allow oil tankers on our coast, and that this pipeline project will never happen,” said Marilyn Slett, the group’s president.
Smith, meanwhile, has urged Carney to unleash Alberta’s natural resources sector — to potentially add tens of billions of dollars into a tariff-hit economy and diversify Canada’s trading relationships by sending more oil to Asian markets.
Former Alberta premier Jason Kenney told CBC News that a pipeline carrying about a million barrels of oil a day to the B.C. coast for export would generate about $25 billion for the economy — and some $5 billion a year in taxes and royalties for the federal and provincial governments.
“With the big trade challenges coming from south of the border, I think we have to do things like this,” he said in an interview with CBC’s Rosemary Barton Live.
The Trans Mountain pipeline expansion, which was built at huge expense using taxpayer dollars, is profitable.
According to the company’s filings, in the first three months of 2025 alone, Trans Mountain generated some $568 million in earnings.
Indeed, not all B.C. Liberals are skittish about the “grand bargain” Carney has negotiated with Smith.
Liberal MP Sukh Dhaliwal, who represents the Vancouver-area suburb of Surrey, said he “stands behind the prime minister on this.”
“There will be good news coming out tomorrow. The prime minister has a vision and something really good will come out of this,” he said.
Liberal MP James Maloney, the party’s caucus chair, said what’s going on are “healthy” conversations with people who have some divergent views.
“I have no caucus management problem whatsoever,” he told reporters, when asked if approving a pipeline could throw the caucus into turmoil.
“I think we have a caucus which we should be very proud of, which has diverse views on a lot of topics. It’s not disagreement, it’s not dissension, it’s discussion.”
Conservative MP Aaron Gunn, who represents the B.C. riding of North Island-Powell River, said Carney must greenlight a new Pacific pipeline to “end the U.S. monopoly on Canadian oil” and anything less would be akin to “selling out to the Americans.”
According to the Canadian Energy Regulator, 93 per cent of Canada’s total oil exports went to the U.S. in 2024, which makes Alberta’s oilpatch in particular dependent on the whims of the American market.
“Failing to act is a betrayal of our national interest, it’s a betrayal of our workers,” Gunn said in question period. “As long as the world needs these resources, as long as the world needs oil and gas — as much of those resources should come from right here in Canada.”
