Alberta and Ottawa ink landmark energy agreement

November 27, 2025 Media inquiries

The Governments of Canada and Alberta have signed a new agreement to more than double oil exports to Asian markets, address investment uncertainty and reduce emissions.

This new energy partnership is a critical step towards achieving Alberta’s and Canada’s shared goal of turning our country into a world energy superpower and building a stronger and more vibrant economy.

The new energy agreement includes:

• A declaration by the federal government that an Indigenous co-owned Alberta bitumen pipeline to Asian markets is a project of national interest.
• Agreement that the parties will work together to facilitate the application, approval and construction of a privately financed and constructed 1 million+ barrel per day, Indigenous co-owned bitumen pipeline to Asian markets through a strategic deep-water port.
• Commitment by the federal government that it will not be implementing the federal oil and gas emissions cap.
• An immediate suspension of the federal Clean Electricity Regulations, and agreement the parties will work towards the construction of thousands of megawatts of AI computing power, with a large portion dedicated to sovereign computing for Canada and its allies.
• Commitment by both governments to partner with the Pathways companies to finance and construct the world’s largest carbon capture utilization and storage (CCUS) project for the purpose of making Alberta bitumen amongst the lowest emission intensity barrel of heavy oil in the world.
• In order to achieve net zero greenhouse gas emissions by 2050, the Alberta and federal governments will design and commit to globally competitive, long-term carbon pricing and sector-specific stringency factors by Apr. 1, 2026, for large Alberta emitters in both the oil and gas and electricity sectors through Alberta’s TIER system.
• Entering into a methane equivalency agreement by Apr. 1, 2026, with a 2035 target date and a 75 per cent reduction target relative to 2014 methane emissions levels.
• Agreement to immediately consult and work with Indigenous partners and the Government of British Columbia to ensure their peoples enjoy substantial economic and financial benefit from the pipeline.
• Significantly decrease regulatory uncertainty through a variety of changes to various legislation, regulation and policy.

The new agreement also demonstrates that both Alberta and Canada are focused on ways to increase the production and export of Alberta oil and gas, maximize growth in AI datacentre and related industries in Alberta, assist Canada in achieving its national security goals, create hundreds of thousands of new jobs, all while reducing the emissions intensity of Canadian oil, gas and electricity through the development and implementation of CCUS, nuclear and other emissions reducing technologies.

“This is Alberta’s moment of opportunity to take the first steps toward being a global energy superpower and show the nation that resource development and sustainability can coexist. There is much hard work ahead of us, but today is a new starting point for nation building as we increase our energy production for the benefit of millions and forge a new relationship between Alberta and the federal government.”

Danielle Smith, Premier of Alberta