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Carney, Smith Sign Pipeline Deal; Guilbeault Quits

The deal includes commitments on carbon capture and industrial carbon pricing, aiming to open Asian export markets and diversify Canada's energy routes, officials said.

  • At a Calgary ceremony, Prime Minister Mark Carney and Alberta Premier Danielle Smith signed a Memorandum of Understanding to pursue a West Coast oil pipeline and shared green-technology goals.
  • To open Asian markets and attract investment, the MOU links pipeline approval to the Pathways Alliance carbon-capture project and industrial carbon pricing to boost jobs and investment.
  • The agreement requires private financing and Indigenous co-ownership, while the pact outlines a pipeline capable of moving one million barrels per day to the B.C. coast and Asian markets and contemplates exempting an approved project from the Oil Tanker Moratorium Act.
  • The immediate political consequence was Steven Guilbeault's resignation, which came after he told Prime Minister Mark Carney by letter on Wednesday night he could not stay in federal cabinet as the MOU stood, though he will retain Liberal MP status.
  • By July 1, 2026 the MOU requires the parties to decide how Alberta submits a pipeline application to the Major Projects Office and seek federal feedback on AI data-centre policy.
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The Toronto Star broke the news in Toronto, Canada on Wednesday, November 26, 2025.
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