Pipeline Online: West Coast pipeline could also advance Saskatchewan nuclear plans

By Brian Zinchuk

REGINA — Saskatchewan Premier Scott Moe says the proposed West Coast Pipeline represents more than a new route for exporting oil. He believes it could also strengthen Saskatchewan’s position in negotiations with the federal government on electricity, infrastructure and the province’s long-term nuclear power plans.

Speaking with Pipeline Online on July 3, Moe said the proposed pipeline would improve Canada’s ability to reach Asian markets while easing pressure on existing export capacity to the United States.

“We have to get additional barrels to largely Asian countries,” Moe said. “It’s good not only for the increase in volume that we want to achieve in Canada, Saskatchewan and Alberta, but it’s also good for reducing the basis because we also need to continue providing existing and additional barrels to the United States.”

He said additional export capacity would benefit Saskatchewan producers by creating more room in existing pipeline systems while allowing future production growth.

Southern route acceptable

Although Moe previously expressed support for a pipeline terminating at Prince Rupert, B.C., he said the newly announced southern route to Roberts Bank still accomplishes the primary objective.

“The goal here is to make Western Canadian barrels available to the world, largely the Asian markets,” he said. “This does that, so that is good.”

Moe acknowledged Saskatchewan would have preferred the additional economic opportunities that could have come with expanded infrastructure at Prince Rupert, particularly for agricultural exports and potash, but called the current proposal a positive step.

Asked whether following a route similar to the existing Trans Mountain Expansion made sense despite its well-known challenges, Moe said Canada has already demonstrated it can build major pipeline infrastructure.

“We just built one,” he said. “This parallels the route Canadians just built. At the end of the day, the goal is to make Western Canadian barrels available to the world.”

Pipeline tied to broader negotiations

Moe said the pipeline announcement also fits into wider discussions between Ottawa and Saskatchewan.

He noted that, shortly before the pipeline announcement, Prime Minister Mark Carney and British Columbia Premier David Eby announced a major infrastructure agreement supporting LNG projects, Roberts Bank expansion, highway improvements and new transmission infrastructure.

Saskatchewan, Moe said, is engaged in similar discussions focused on electricity generation and transmission.

“The most significant issue for Saskatchewan is our electricity transition plan,” he said. “We need to ensure we have affordable, reliable electricity for investments that are being made and, most importantly, for Saskatchewan families.”

Nuclear power part of the discussion

Moe said those discussions increasingly involve nuclear power.

He pointed to Alberta’s emissions reduction plans, noting one way oil producers can reduce emissions is by replacing natural gas-fired electricity with nuclear-generated power.

“That is the very discussion we are embarking on,” he said. “How do we get to that nuclear future in an affordable way? I think the federal government is open to what that path might look like.”

Large reactors appear increasingly likely

Pipeline Online also asked Moe whether Saskatchewan’s recently announced 2,000-megawatt transmission intertie with Manitoba suggests the province is moving toward large-scale nuclear reactors instead of small modular reactors.

Moe said larger reactors are generally recognized internationally as producing electricity at a lower cost per megawatt.

“The large-scale reactors look to be a much more affordable way to provide not only replacement electricity but also the additional power we’ll need for future industrial investment,” he said.

He added that SaskPower continues studying whether the province’s electrical grid can efficiently integrate one or more 1,000-megawatt reactors and what additional infrastructure would be required.

The new Manitoba intertie, along with other transmission projects, forms part of that evaluation, Moe said.

While no final decision has been made between small modular reactors and conventional large reactors, he acknowledged the economic advantages of larger units are becoming increasingly apparent.

More work remains

Moe cautioned that significant work still lies ahead before the proposed pipeline becomes reality, including finalizing ownership, construction costs and production economics.

He also emphasized Saskatchewan is well positioned to benefit from future investment, citing more than 60 major projects representing over $62 billion in planned investment across mining, agriculture and energy.

“This has been a long overdue conversation,” Moe said. “It’s not perfect, but it is happening, and it will be incumbent on all of us to work together to land those investments, create jobs and move our energy industry into a much more positive future.”