Canada Reconsiders West-East Pipelines Amid Trade Uncertainty

As Canada faces potential trade tensions with the United States, Industry Minister François-Philippe Champagne has suggested that the country may need to rethink its approach to energy infrastructure, including the possibility of a pipeline connecting Alberta’s oil and gas sector to the East Coast.

Champagne’s remarks come in response to Alberta Premier Danielle Smith’s renewed push for major pipeline projects that would facilitate the province’s energy exports. In an interview on CTV’s Question Period, he emphasized the need for forward-thinking solutions. “Things have changed … you cannot be in the past,” Champagne said. “You need to look forward, and that may mean having transmission lines and pipelines that connect East and West.”

The growing concern over U.S. President Donald Trump’s stance on trade has sparked calls for Canada to strengthen its energy independence. Trump has accused Canada and Mexico of unfair trade practices and has suggested that the U.S. has sufficient domestic oil, reducing its reliance on imports. Although his administration has granted a temporary 30-day reprieve on potential tariffs, Canadian officials are seeking long-term strategies to counter economic vulnerabilities.

The idea of reviving a cross-country pipeline comes more than seven years after TC Energy (formerly TransCanada) canceled the Energy East pipeline. While the federal government framed the decision as a business move, company executives later pointed to regulatory uncertainty as a significant deterrent to investment. The project also faced strong opposition in Quebec, where environmental concerns and public resistance played a role in its cancellation.

Despite historical opposition, Champagne believes shifting geopolitical realities could alter public sentiment in Quebec. “We cannot be dependent,” he stated. “People now better understand the link between energy security, economic security, and even national security.” However, Quebec leaders remain skeptical. Bloc Québécois Leader Yves-François Blanchet has reaffirmed his opposition to any new pipeline projects in the province, while Premier François Legault has expressed doubt about public support for such initiatives.

Quebec may, however, be open to revisiting other energy projects. The provincial government has hinted at reconsidering the LNG-Québec project, a liquefied natural gas initiative in the Saguenay region that was scrapped in 2021 due to environmental concerns and public backlash. Quebec Environment Minister Benoit Charette has suggested that while energy projects must meet strict environmental criteria, they are not entirely off the table.

As economic and energy security concerns grow, Canada faces a crucial decision: whether to push forward with controversial infrastructure projects or find alternative ways to secure its energy future.