By Paul Vieira
OTTAWA--Canada agreed on Thursday to maintain a ban on oil-tanker traffic off the northern Pacific Coast, which is likely to force the province of Alberta to seek a different route for its proposed new crude-carrying pipeline.
Canadian Prime Minister Mark Carney and Alberta Premier Danielle Smith are scheduled to hold a press conference late Thursday regarding Alberta's proposed new energy corridor. Prior to that, Carney struck a deal with the British Columbia government whereby the Canadian leader committed to keep the tanker ban in place, despite calls from Alberta for its removal.
Smith had pushed for a new pipeline to British Columbia's northern coast. A spokesman for Smith did not respond to a request for comment. At a press conference in Vancouver, Carney skirted questions about the proposed pipeline's route, saying those would be addressed at a separate announcement on Thursday.
Smith had previously told local media the province was exploring a pipeline route to both the northern and southern coasts of British Columbia, which is directly north of the state of Washington.
British Columbia Premier David Eby said the province is opposed to any crude pipeline going through the north of his province. He said Ottawa's commitment to uphold the bank — introduced by former Prime Minister Justin Trudeau — represents a big win for the province and its indigenous communities.
"We have anxiety about the impact of any new pipeline project period on British Columbia's coast, which is why in this agreement there are very clear safeguards in place around spill protection around British Columbia's participation," Eby said.
A summary of the Canada-British Columbia agreement, released by Carney's office, acknowledges that the federal government has the authority to approve the construction of pipelines that cross provincial boundaries. "Although British Columbia does not seek this project, it recognizes its constitutional obligations and commits to acting in good faith to engage in the necessary routing and permitting discussions" so long as certain commitments are met, the agreement said.
Maintaining the tanker ban is one of those conditions. Another is that British Columbia would collect annual royalty payments from the operator of a pipeline, should it ultimately be built.
Alberta's proposed pipeline still has no private-sector backer, Carney said this week. Some senior oil-industry executives have warned the pipeline won't find a private-sector proponent unless the Canadian and Alberta governments are willing to pledge billions for its construction, due to the country's regulatory environment.
Write to Paul Vieira at paul.vieira@wsj.com