CALGARY — Canadian Prime Minister Mark Carney announced on Thursday, July 2, 2026, that the federal government will maintain a long-standing ban on oil tankers off northern British Columbia as part of a pipeline agreement with Alberta. Carney also stated that Alberta Premier Danielle Smith will provide details on a potential pipeline route during a joint news conference in Calgary on the same day.

The Prime Minister indicated that he will offer compensation to British Columbia for environmental risks if a pipeline is constructed in the southern part of the province. British Columbia Premier David Eby stated on Thursday that he had secured a commitment to uphold the northern tanker ban. "It ensures that the northern tanker ban remains in place, and it ensure that if a pipeline goes ahead, British Columbians are fairly compensated in the environmental risks," Eby said.

Carney stated that the federal government is addressing environmental concerns related to the pipeline proposal. He said a pipeline could reduce the price discount on current oil sales to U.S. markets. Carney has set a goal for Canada to double its non-U.S. exports in the next decade.

Carney added that the federal government seeks to ease separatist tensions in Alberta. Alberta is scheduled to hold a public vote in the fall of 2026 on whether to conduct a referendum on separating from Canada. British Columbia opposes a pipeline traversing its northern regions, as do some First Nations groups.

A previous memorandum of understanding between Ottawa and Alberta had included an adjustment to the oil tanker ban off parts of the British Columbia coast. Former Prime Minister Justin Trudeau's Liberal government had opposed a pipeline that could cross northern British Columbia and the Great Bear Rainforest, and rejected the Northern Gateway project. Trudeau did approve one pipeline from Alberta to the British Columbia southern coast. Alberta holds one of the world's largest proven oil reserves, and Canada is seeking greater access to Asian markets for its oil exports.