Alberta Premier Smith Rules Out Gas Crown Corp

Alberta Premier Danielle Smith declared on Saturday that her government is unlikely to establish a Crown corporation to build natural gas pipelines. This statement follows the leakage of a cabinet report that recommended creating two state entities to expand transmission lines, a move intended to support oil production and the growing energy demands of artificial intelligence data centres.

Smith indicated that the province is currently exploring solutions within the private sector. She noted that while the government has received input from dozens of companies facing access issues, the focus remains on leveraging existing market participants rather than introducing state-owned infrastructure.

Leaked Report Recommends State Intervention

The leaked document advised the cabinet to move forward with legislation to create the proposed Crown corporations. The report estimated the cost of establishing these entities at between $53.9 million and $162.6 million, while noting that constructing new major pipelines could cost billions. It warned that without a rapid solution for natural gas supply, Alberta risks losing data centre developers to other jurisdictions.

The report identified Calgary-based TC Energy as the primary obstacle, describing its control over transmission infrastructure as a monopoly. Specifically, it highlighted that TC Energy’s Nova Gas Transmission Ltd. is expected to reach full capacity by 2029, with limited expansion plans after 2030. The document stated that TC Energy is hesitant to invest in further capacity unless it receives returns comparable to its projects in the United States.

Premier Prioritizes Private Sector Competition

Smith characterized the situation as an active conversation, noting she has met with TC Energy leadership and other private firms. She argued that increasing competition and choice is the necessary step to ensure sufficient gas supply. Smith expressed confidence that private sector interest is sufficient to drive further development, making a Crown corporation unlikely.

She contended that constrained supply, rather than increased capacity, is the driver of higher prices. Smith argued that expanding the supply of natural gas is essential to prevent price increases for Albertans, countering the view that government intervention would lead to higher energy bills.

Political Opposition Challenges Price Logic

NDP Leader Naheed Nenshi disputed Smith’s rationale, stating that Albertans’ energy bills remain at risk. He alleged that the report suggests the government intends to pressure private companies into building infrastructure or spend taxpayer dollars to do so, with the goal of increasing natural gas prices. Nenshi maintained that the proposed interventions would ultimately raise costs for consumers.

Smith did not rule out the possibility of legislation to spur new infrastructure, which the report warns could lead to legal disputes with TC Energy. The proposed legislation would aim to override federally approved cooperation agreements the company holds with other market participants, a move that signals a potential regulatory shift in the province's energy sector.