May 10, 2026 to May 16, 2026

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news concerning oil and gas production, wells, drilling, petroleum and fuels refining, pipelines, LNG, hydrocarbons, and all Landman fans. Once a week, we break down the most important updates in this space in under five minutes.

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📋 In This Week's Newsletter

• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 💬 Government Consultations
• 📚 What We're Reading This Week

Federal Government News

Federal–Alberta Agreement Clears Path for New West Coast Oil Pipeline and Adjusts Carbon Pricing

The governments of Alberta and Canada have finalized details of an energy memorandum, confirming plans to design and construct a new oil pipeline to Asian markets with construction scheduled as early as September 2027. The implementation agreement includes regulatory changes designed to reduce uncertainty, allow Alberta to increase energy production and exports, and postpone a significant increase in the federally mandated industrial carbon tax, which is projected to save industry approximately $250 billion through 2050. The pipeline, proposed as Indigenous co-owned, would transport over one million barrels of oil per day to a strategic Pacific port. On industrial carbon pricing, the agreement will keep the price of carbon at $95 per tonne for 2026, rising to $100 per tonne in 2027, reaching $130 per tonne by 2035, and increasing by 1.5% annually to 2040. Sector-specific stringency factors under Alberta’s TIER system apply to large emitters in oil, gas, and electricity, with a targeted market price floor in place for TIER credits from 2030. The federal government has committed to prompt review by the Major Projects Office with national interest designation by October 2026. Additional agreements address methane regulation and impact assessments, and include support for completion of major CCUS infrastructure in Alberta.

Sources: www.alberta.ca

Canada, British Columbia, and LNG Canada Finalize Phase 2 Expansion Investment Co-operation

The federal government, British Columbia, and LNG Canada have agreed to enhanced investment co-operation for progressing the LNG Canada Phase 2 expansion, aiming for a 2026 Final Investment Decision. LNG Canada’s Joint Venture Participants approved several hundred million dollars in incremental funding on May 1, 2026, for engineering and commercial agreements, potential long-lead item placement, supply chain, and construction at the marine offloading terminal. The investment could position Canada among the world’s top five LNG exporters and support federal ambitions for expanded trade in clean energy. Phase 2 emissions are projected to be 35% lower than world-leading LNG facilities and 60% below global averages. The agreement anchors four objectives: collaboration with First Nations, local and national investment competitiveness, jobs and training, and diversification of export markets. Final approval remains subject to individual Joint Venture Partner requirements.

Sources: www.canada.ca

Minister Anand Meets Omani Energy Minister, Showcases Canadian Critical Mineral and Energy Leadership

On May 13, Minister Anita Anand held discussions with Oman’s Minister of Energy and Minerals, Salim bin Nasser bin Said Al Aufi, highlighting Canada’s reliability as an investment partner and its leadership in energy and critical minerals. Canadian companies are active in Omani energy efficiency projects, aligning with Oman’s Vision 2040 decarbonization goals. Minister Anand confirmed Canada's intent to strengthen supply chains and welcomed Omani participation in Canadian energy forums, including the Global Energy Show (Calgary, June 9–11) and the 11th Annual Global Conference on Energy Efficiency (Montreal, June 29–30).

Sources: www.canada.ca

Minister Hodgson Concludes B.C. Tour With Focus on Indigenous Partnerships and Major Resource Projects

Tim Hodgson, Minister of Energy and Natural Resources, completed a multi-day tour of energy, mining, and forestry projects across northwest British Columbia, engaging with industry and Indigenous leaders. He visited LNG Canada’s Phase 2 project, which is projected to attract $33 billion in private capital, double LNG production, and diversify export targets. The Northwest Critical Conservation Corridor and the Red Chris Mine expansion will boost national copper production by over 15%, employ 1,500 workers, and reduce emissions by 70%. Hodgson also met with Haisla Nation leaders on the Cedar LNG export terminal, the largest Indigenous majority-owned infrastructure project in Canada's history, expected to generate $275 million GDP during construction and $85 million annually in operations. The federal government has renewed the Indigenous Natural Resources Partnership Program with $84 million over four years and expanded the Indigenous Loan Guarantee Program to $10 billion.

Sources: www.canada.ca

Federal Investment Supports Clean Energy Projects in Rural and Remote B.C. Communities

Natural Resources Canada announced over $4.5 million investment via the Clean Energy for Rural and Remote Communities (CERRC) program in British Columbia, supporting clean electricity generation and reducing reliance on diesel in rural, remote, and Indigenous communities. Projects will utilize water, biomass, solar, and other renewable sources to provide reliable, affordable energy. Community-driven training will enable local management and operation of energy solutions, while financial risk reduction measures aim to accelerate readiness and attract private sector investments.

Sources: www.canada.ca

StatsCan Manufacturing Survey Shows Petroleum and Coal Products Drive Sales Gains

Statistics Canada’s Monthly Survey of Manufacturing for March 2026 noted a 3.0% increase in manufacturing sales, with petroleum and coal products and transportation equipment as primary drivers. Total sales rose marginally on a quarterly basis, registering 0.1% growth in Q1 2026. Data suggest ongoing demand for oil and gas-derived products within the national manufacturing sector.

Sources: www.statcan.gc.ca

StatsCan Releases Employment Dashboard for Rural Industry Sector

Statistics Canada has updated its Employment by industry in rural Canada interactive dashboard for the April 2026 reference period, offering new data and analysis relevant to the oil and gas sector’s rural workforce levels.

Sources: www.statcan.gc.ca

Provincial Government News

Enhanced Investment Co-operation Advances LNG Canada Phase 2 Expansion

British Columbia, Canada, and LNG Canada signed a co-operation agreement to move forward on LNG Canada’s Phase 2 expansion, coordinating project approvals and investment objectives.

Sources: news.gov.bc.ca

Premier Kinew Discusses Indigenous Participation in Manitoba Infrastructure Development

Manitoba Premier Wab Kinew, TC Energy leadership, and Indigenous Advisory Council met to address Indigenous ownership roles in advancing the Churchill Plus project and related major energy infrastructure.

Sources: news.gov.mb.ca

Premier Kinew, India’s High Commissioner Explore Port of Churchill for Export Opportunities

Manitoba's premier and India's High Commissioner held talks on utilizing the Port of Churchill for LNG, agricultural product, and critical mineral exports to international markets.

Sources: news.gov.mb.ca

Government Consultations

NRC Consultation on Removal of Historic Fuel Tank at Dominion Radio Astrophysical Observatory

The National Research Council of Canada is soliciting public input until May 21, 2026, regarding the removal of a decommissioned above-ground fuel tank at the Dominion Radio Astrophysical Observatory in British Columbia.

Sources: iaac-aeic.gc.ca

What We're Reading This Week

• Ottawa, Alberta agree on carbon pricing to advance plan for new oil pipeline: Federal and provincial governments define carbon pricing structure tied to a new pipeline proposal.
• Mark Carney and Danielle Smith target 2027 for new Alberta pipeline: Alberta’s premier and Prime Minister specify a 2027 timeline for pipeline construction.
• Report details equipment problems, flaring violations at LNG Canada: Recent report examines LNG Canada emissions and operational challenges.
• Ottawa, Alberta close to reaching industrial carbon pricing deal, sources say: Sources indicate an imminent agreement on industrial carbon pricing.
• ‘Extraordinarily innovative’ oil sector can weather increased carbon price: ATCO CEO: ATCO’s CEO says industry is prepared for carbon price increases.
• Canada’s energy ambitions may run through the perilous waters of Hecate Strait: Analysis of risks for energy shipment routes in British Columbia.
• Europe's Oil, Gas Lobbies Urge Flexibility on Storage Targets: European industry bodies press for adaptation in storage regulations.
• Opinion: Oil smuggling is becoming the new normal because of Trump’s erratic sanctions policies: Editorial discusses global oil smuggling amid shifting US sanctions.

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