Smith calls Crown corporation for natural gas pipelines 'unlikely'

Premier Danielle Smith said Saturday on her radio call-in program that it's "unlikely" her government will create a Crown corporation to build new natural gas pipelines, despite a leaked cabinet report recommending legislation and two such corporations to expand transmission capacity. Smith said dozens of companies have told the province they're struggling to access natural gas, and that talks are for now staying within the private sector.

The leaked report warned Alberta could lose out on artificial intelligence data centre investment without a quick fix to gas supply, and pointed to Calgary-based TC Energy, which Smith called a "monopoly," as the core problem. The report said TC Energy's Nova Gas Transmission Ltd. system is expected to run at full capacity until 2029, with the company unwilling to expand further without returns matching its U.S. projects. The proposed Crown corporations were estimated to cost between $53.9 million and $162.6 million, versus billions for a new major pipeline.

Smith said she has met with TC Energy and other private companies and is looking to increase competition rather than rely on a single provider. She dismissed warnings from NDP Leader Naheed Nenshi that the report itself flags a risk of higher energy prices for Albertans if the government intervenes, arguing that increasing gas supply, not constraining it, is what will keep bills down.

Nenshi said the report shows the government wants to either pressure private companies into building infrastructure or spend billions in public money to boost natural gas prices. Smith did not rule out legislation to spur new pipeline construction, an option the report says could result in legal action from TC Energy.