Carney and Eby Keep B.C. Tanker Ban While Pouring Billions Into LNG, Mines and Trade Corridors

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Mark Carney and David Eby are attempting something Canadian governments have often struggled to achieve: accelerate resource development without reopening one of the West Coast’s most divisive environmental battles. Their new federal-provincial agreement preserves the oil tanker restrictions protecting northern British Columbia while directing billions of dollars in support toward LNG facilities, copper production, electricity transmission and Pacific trade routes.

The result is not a retreat from resource development. It is a decision to pursue a different collection of projects—many already supported by private investors and First Nations—while limiting where a future Alberta oil pipeline could reach tidewater. For workers in Kitimat, Terrace, Prince George and the Lower Mainland, the deal promises construction activity and long-term employment. For governments, it is a test of whether economic expansion, Indigenous partnership and environmental protection can survive in the same political package.

A Grand Bargain Built Around One Red Line

The Canada–British Columbia Cooperative Prosperity Agreement is best understood as a bargain rather than a single project announcement. Ottawa has accepted Eby’s demand that the North Coast tanker ban remain unchanged. In exchange, British Columbia has committed to co-operating on a broader national construction agenda involving natural gas, mining, electricity, ports, roads and potentially a pipeline route that avoids the protected northern coast. An implementation committee will oversee the commitments, resolve delays and establish measurable timelines.

The headline financial promises add up to as much as $7.4 billion before potential LNG financing, port spending and later phases of transmission construction are counted. That includes $3.9 billion in federal support mechanisms for the first two phases of the North Coast Transmission Line, up to $3 billion for the Fraser River tunnel project and $500 million for the Red Chris mine expansion. Not all of that represents immediate government spending. The package combines direct contributions, low-cost financing, tax credits, loan guarantees and regulatory support. Even so, its scale signals that Ottawa sees British Columbia’s Pacific-facing economy as central to reducing Canada’s dependence on the United States.

The Tanker Ban Survives, but the Pipeline Debate Does Not

The federal Oil Tanker Moratorium Act has been in force since 2019. It prevents vessels carrying more than 12,500 metric tonnes of crude oil or persistent petroleum products from loading, unloading or stopping at ports along much of northern British Columbia, including the waters around Haida Gwaii, Hecate Strait and Queen Charlotte Sound. Smaller deliveries remain permitted so remote communities can receive heating fuel and other essential petroleum products. LNG carriers are not covered by the prohibition.

The agreement promises to maintain that law without alteration, suspension or a narrower geographic scope. That substantially limits the export options for Alberta’s proposed new oil pipeline, but it does not end the pipeline discussion. British Columbia has agreed to participate in good-faith routing and permitting talks if Ottawa advances an interprovincial project. In return, the province wants a legally binding share of the economic benefits, potentially through annual payments from the operator, as well as an environmental liability fund accessible to B.C. and First Nations. The deal also contemplates increasing Trans Mountain’s capacity from approximately 890,000 to 1.19 million barrels per day through system optimization rather than another full pipeline.

LNG Becomes the Economic Centrepiece

While the agreement restricts large crude-oil tankers in the north, it actively promotes LNG exports from the same broader region. Ottawa and Victoria have identified LNG Canada Phase 2, Ksi Lisims LNG, Cedar LNG and Woodfibre LNG as priority projects. Carney has said the government wants to triple Canadian LNG production during the next decade, giving producers greater access to Asian and European customers as Canada tries to diversify beyond its traditional U.S. energy market.

The four projects are at different stages. LNG Canada Phase 2 would double production at the Kitimat facility, although its owners must still make a final investment decision. The proposed Ksi Lisims facility would produce approximately 12 million tonnes annually on Nisga’a Nation-owned land. Cedar LNG, majority-owned by the Haisla Nation, has already reached its investment decision and is designed for 3.3 million tonnes per year. Woodfibre LNG, under construction near Squamish, is expected to produce about 2.1 million tonnes annually. Together, the facilities could transform several coastal communities into major energy-export centres, but the agreement does not guarantee their completion. Ottawa is offering faster coordination, possible financing and trade advocacy—not protection from construction costs or weak global prices.

A $3.9-Billion Power Line Is the Spine of the Plan

The North Coast Transmission Line may be the least familiar project in the package, but it is arguably the most important. Existing transmission capacity between Prince George and Terrace is approaching its limit, even as mines, LNG terminals, ports and industrial facilities request more electricity. The first phase would add roughly 165 kilometres of 500-kilovolt transmission between Prince George and the Glenannan substation near Fraser Lake. The second would extend approximately 275 kilometres from Glenannan toward Terrace.

Federal support worth an estimated $3.9 billion will be assembled through contributions, low-cost financing, clean-electricity tax credits and assistance for First Nations equity participation. The two phases are expected to support approximately 1,400 to 1,600 jobs at peak construction. Governments estimate that the larger transmission buildout could enable about $10 billion in annual economic activity and prevent as much as three million tonnes of emissions each year by allowing industrial customers to use hydroelectricity instead of fossil-fuel power. The line could eventually connect north toward Bob Quinn Lake, support a link with Yukon and potentially improve electricity exchanges with Alberta. In practical terms, it is the infrastructure that makes many of the other promises possible.

Copper Gives the Mining Push Strategic Weight

The $500-million commitment to the Red Chris expansion places copper alongside LNG as a central part of the agreement. Located in Tahltan territory in northwestern British Columbia, Red Chris currently produces copper and gold through an open-pit operation. Newmont and its partner Imperial Metals are pursuing a large underground block-cave development that could extend the mine’s productive life by more than a decade and turn it into a much larger operation.

Federal estimates suggest the expansion could raise Canada’s annual copper production by more than 15 per cent. Approximately 1,800 workers could be required during peak construction, with about 1,500 positions supported during operations. The underground design and access to cleaner electricity are also expected to reduce the mine’s operating emissions by more than 70 per cent. Those figures explain why Ottawa considers Red Chris nationally significant: copper is essential for electrical grids, vehicles, electronics and industrial equipment. The project nevertheless remains dependent on a completed feasibility study, financing and detailed construction decisions. For nearby communities, the more immediate questions will involve contracting opportunities, housing pressures, local services and whether Tahltan participation produces durable wealth beyond temporary employment.

Ports and a New Tunnel Turn the Coast Into Trade Infrastructure

The agreement reaches far beyond resource extraction. Ottawa plans to invest in the Roberts Bank corridor serving the Port of Vancouver, with governments claiming the upgrades could unlock more than $100 billion in additional trade capacity and add approximately $3 billion to Canada’s economy each year. The Port of Vancouver already handles about one-third of Canada’s goods trade with countries outside North America. In 2024, it moved 158 million tonnes of cargo and handled imports and exports valued at roughly $240 billion.

One of the most visible commitments is up to $3 billion for an eight-lane replacement of the aging George Massey Tunnel beneath the Fraser River. The existing four-lane crossing is a daily bottleneck for commuters, commercial trucks and traffic travelling between Vancouver, Delta, the port and BC Ferries. Ottawa and Victoria also intend to examine new opportunities at the ports of Prince Rupert and Stewart, including critical-mineral exports. Prince Rupert handled 23.5 million tonnes of cargo in 2024 and offers shorter sailing distances to parts of Asia than competing North American gateways. The strategy is straightforward: producing more commodities has limited value unless railways, roads and ports can move them reliably.

First Nations Partnership Moves From Consultation to Ownership

First Nations participation is not treated merely as an approval requirement in the agreement. Ottawa and Victoria repeatedly identify ownership, revenue sharing and decision-making authority as conditions for successful development. Cedar LNG offers the clearest example. The Haisla Nation holds a 50.1 per cent interest, making it the majority owner alongside Pembina Pipeline. Ksi Lisims is being developed with the Nisga’a Nation on Nisga’a-owned land, while the Red Chris expansion has been advanced in collaboration with the Tahltan Nation.

Woodfibre LNG operates under a separate environmental assessment process created with the Squamish Nation, which functions as an environmental regulator for the project. For a possible oil pipeline, Ottawa has promised loan-guarantee support that could help affected First Nations purchase equity. The agreement also calls for federal participation in a Tahltan foundation arrangement and continued consultation on protected areas in the northwest. None of these provisions eliminates disagreement among Indigenous governments; coastal Nations have been particularly firm in defending the tanker ban. However, the model is shifting. Governments are increasingly recognizing that communities carrying the environmental and social consequences of development expect an ownership stake, enforceable protections and long-term revenue—not simply short-term contracting work.

The Climate and Delivery Tests Are Still Ahead

Carney and Eby have attached environmental commitments to the construction package, including watershed protection, carbon-market development, coastal spill-response investments and $250 million for whale protection. Electrifying LNG facilities and mines could significantly reduce their production-stage emissions. The transmission line and Red Chris expansion are both being promoted partly on those grounds. Yet LNG remains a fossil fuel, and independent analysis has concluded that expanding Canadian production will raise domestic emissions while its effect on worldwide emissions depends heavily on methane leakage and whether exported gas actually replaces coal rather than renewable energy.

Delivery may be an equally difficult test. Detailed LNG supports, coastal-protection measures, industrial assistance and the first transmission funding arrangements are supposed to be developed by December 1, 2026. Work involving deep-water ports, the third transmission phase and additional clean-electricity projects is targeted for June 1, 2027. Many of the largest investments still require proponents to commit private capital. British Columbia’s broader Look West strategy identifies more than $88 billion in projects that could reach final investment decisions within three years, but proposed investment is not the same as completed construction. The agreement gives governments a shared blueprint. Its credibility will ultimately be measured by permits issued, financing secured, Indigenous agreements completed and projects operating without abandoning the coastal protections that made the bargain possible.

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