Alberta Premier Rachel Notley used her strongest language yet Wednesday as she prepares to use a new bill to choke off gasoline shipments to British Columbia.
Bill 12 is expected to be passed in the Alberta legislature later today, and Notley told reporters at a news conference she is ready to use it at short notice.
“Albertans, British Columbians and all Canadians should understand that if the path forward for the pipeline through B.C. is not settled soon, I am ready and prepared to turn off the taps,” she said.
Vancouver drivers are currently paying about $1.57 per litre, and blocking shipments could push prices even higher, putting political pressure on B.C. Premier John Horgan.
Asked when she planned to take action, Notley declined to reveal details.
“With the greatest of respect, I’m not going to spell out the exact schedule and the exact steps,” she said.
Notley also responded to an announcement Wednesday morning by the federal finance minister that Ottawa is willing to compensate backers of the Trans Mountain pipeline project for any financial losses due to political obstruction.
Finance Minister Bill Morneau said Canada is willing to write Kinder Morgan — or whoever steps up to the plate — a cheque to ensure the Trans Mountain pipeline expansion gets built.
Notley said she remains confident construction will resume this summer. She said she speaks to Morneau every day, and Alberta officials are involved in the talks with Kinder Morgan.
The premier suggested different scenarios are at play.
“If framework one doesn’t work, there may well be a framework two,” she said.
Asked if her government is still willing to purchase the project, Notley said she will “do whatever is necessary” to get construction underway this summer.
Morneau’s comments came just hours before Kinder Morgan Canada’s stakeholders plan to meet in Calgary. The incentive offer comes two weeks before the company’s potential drop-dead date.
Kinder Morgan has threatened to abandon the project if a clear path forward isn’t reached by May 31.
Morneau consulted with senior officials in the Alberta government and Kinder Morgan CEO Steve Kean Tuesday night.
Last month, Kinder Morgan stopped all non-essential spending on its $7.4-billion project after a months-long standoff between the British Columbia and Alberta governments.
B.C. has been working to block the pipeline for environmental reasons over Alberta’s objections.
The expansion would add a second pipeline along Kinder Morgan’s existing pipeline route to carry diluted bitumen from Alberta to the B.C. coast for export on tankers.