Cathy Dobson/Local Journalism Initiative & Heather Wright/The Independent

The security of Sarnia-Lambton’s industrial future received a big boost with Monday’s announcement that a new proposed pipeline will be routed entirely through Canada from Alberta to Sarnia’s refineries.

“What it means is Canadian feedstock (will be) moving to Canadian production through Canadian transmission, solely in Canada,” said Matthew Slotwinski, CEO of the Sarnia Lambton Economic Partnership (SLEP).

“This project is critically important to Canada from an energy and feedstock security standpoint, and critically important to Sarnia-Lambton’s petrochemical and refining operations,” he said. 

Alberta Premier Danielle Smith and Ontario Premier Doug Ford announced the route for the Northern Shield Energy Corridor Monday and said the pipeline would move an additional 500,000 barrels of Alberta oil per day, with the potential for a future expansion of up to 800,000 barrels per day.

“This new corridor will include the concept of a strategic petroleum reserve, or SPR, that will store vital Alberta oil reserves in the Sarnia refinery area to ensure key refined products like diesel, jet fuel, and gasoline are uninterrupted,” Smith said during a news conference in Alberta.

Ontario is working on a cost estimate and will examine commercial models and related development opportunities for the energy corridor.

“The Northern Shield Energy Corridor will include a new pipeline built using Canadian steel by Canadian workers that will bring oil from Hardisty, Alberta to new and expanded refineries in Sarnia, Ontario, including Sarnia’s vital energy and shipping routes,” said Ford, adding that bringing Alberta oil to Sarnia will ” fuel our province’s economic growth.”

Ford told reporters Ontario hopes to have a feasibility study complete in a year and he’s already been talking to the federal government’s “Major Projects Office” which prioritizes national-building projects.

Moving feedstock from the west to Sarnia has been a concern since the United States initiated legal action related to Line 5, which is a major feedstock conduit currently travelling under the Straits of Mackinac.  If Line 5 were to shut down without an alternate pipeline from out west, Sarnia’s refinery future could be jeopardized.  

But the promise of the Northern Shield Energy Corridor – entirely on Canadian soil – solves that problem, said Slotwinski. 

“If Line 5 were ultimately halted, it would impact several local operations,” he said.  “So what this does is ensure feedstock security for the local (refineries) and energy security for all of Ontario.

“This is fantastic news.”

An all-Canadian pipeline reflects the provincial governments’ continued belief in the longterm need for oil-based infrastructure, Slotwinski said.

“That’s not to diminish the fact that we still have to look for clean, green and sustainable opportunities and diversification.”

Ford said Ontario is “exploring new existing port options for pipeline extensions and (a) potential strategic petroleum reserve, will define estimated costs, explore commercial options, and engage further with potential private sector partners. We’ve launched and will honour our duty to consult with indigenous communities.”

Both premiers said there are options to extend the pipeline to the east coast and to Churchill, Manitoba if there is the political will. And both said while they would welcome commercial investors, building the pipeline with taxpayers’ dollars is also on the table. Smith said using tax dollars for pipelines will pay dividends in the long run as the provinces will earn revenue from companies using it to transport oil to Sarnia.

Sarnia Mayor Mike Bradley called the Northern Shield pipeline announcement “a lot of good news for Sarnia-Lambton, in a social medial post Monday. 

“When the premier visited Sarnia city hall last August, we discussed that Sarnia-Lambton needed to be part of any new Canadian pipeline as Eastern Canada’s energy hub. A huge step forward announced today with lots more work to be done,” Bradley said.

Sarnia-Lambton MPP Bob Bailey also expressed support for the project.

“Connecting Alberta’s vast energy resources to the Sarnia-Lambton petrochemical hub through a new, fully Canadian pipeline is the perfect example of a nation-building project that can power our collective economic growth for generations to come,” Bailey said in an email.

 “I look forward to the completion of the feasibility study later this year and will do everything in my power to support and advance this vision for the Northern Shield Energy Corridor.”

The Sarnia-Lambton Chamber of Commerce was also optimistic. “This announcement recognizes the strategic importance of Sarnia-Lambton within Canada’s energy economy,” said Steve Crozier, Interim CEO.

“Our region has the infrastructure, skilled workforce, and industrial expertise that have made Sarnia-Lambton a centre of Canadian energy and industry for generations. We are encouraged to see our region identified as a key destination for proposed major infrastructure investment and look forward to learning more about the proposal and what it could mean for Sarnia-Lambton as the feasibility study progresses.”

According to SLEP, Sarnia-Lambton is home to three of Ontario’s four oil refineries and is responsible for over 70 per cent of Ontario’ refining capacity.  Imperial Oil, Suncor and Shell are located here while Imperial operates the fourth refinery at Nanticoke.