Alberta government signs new oil and gas agreement with Enbridge

The Alberta government has signed an agreement with Enbridge that Premier Danielle Smith says will increase exports of the province's heavy oil to the United States.

The deal will establish a working group to "evaluate future egress, transport, storage, terminalling and market access opportunities" across the company's expansive network.

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Smith said the objective of the team will be to double the amount of oil Alberta produces and fit with Enbridge's goals.

"(It) aligns with Enbridge's plans to enhance its existing pipeline systems and we look forward to partnering with them to enhance cross-border transport solutions. This will also allow us to play a role in supporting the United States in its energy security and affordability goals," she said.

The group will also allow Enbridge to work with government to cut red tape and streamline regulations and permitting approvals.

"We're prepared – and exceptionally well-positioned – to work with producers and governments to deliver capacity as production ramps up, providing cost-effective, scalable, executable solutions now and through the decade that support North American energy security, reliability and affordability," said Greg Ebel, president and CEO of Enbridge Inc.

Smith has previously said she aspires to double Alberta's oil and gas production and is talking to all pipeline companies about that.

She also said she expects to be in the U.S. for a few days every month this year.

The pitch begins later this month in Washington D.C., when she attends President Donald Trump's inauguration, followed by trips to Texas, Louisiana and Oklahoma.

Trump has said one way for countries to avoid his proposed 25 per cent tariffs is to buy American-produced oil and gas.

On her radio show Saturday, Smith said the U.S. produces 13 million barrels of oil a day but consumes 20 million, so Trump's suggestion only works if Alberta helps fill that seven-million-barrel shortfall.

"We've been such a quiet, friendly, competent neighbour that we aren't on anyone's radar screen anymore, and we just want to continue being that quiet, friendly, competent neighbour who's able to assist the Americans on being able to get the products that they need and as I think we make that case, we'll be able to make the case to be tariff-free across all of our products across all of our provinces," said Smith, on the show.

Smith said the deal with Enbridge will be the first of many similar agreements with other oil companies that do business in Alberta.

"We are also in discussions with the other pipeline companies and look forward to advancing other ideas and opportunities that continue to provide Albertans that own this resource with investment returns and proactive market access opportunities."

With files from Amy Stalker