Cooperation agreement on pipelines, critical minerals and responsible energy development: Ontario and Alberta

Between:

The Government of Alberta hereinafter referred to as “Alberta,”

And

The Government of Ontario hereinafter referred to as “Ontario,”

Collectively, the “Parties.”

Whereas Alberta and Ontario share many of the same economic development objectives and have a common goal of ensuring Canada is a recognized leader in sustainable and secure energy production, supply and transportation;

Whereas Alberta and Ontario are seeking to reduce global energy dependence on foreign actors and regimes seeking to undermine our security and democratic values;

Whereas Alberta and Ontario acknowledge they have joint and mutual interest supporting industry’s efforts to attract investment, build pipelines, rail and other transmission infrastructure, and enhance export and value-added opportunities for Canadian oil and gas, critical minerals, and related energy industries;

Whereas Alberta and Ontario are committed to attracting and protecting investment and jobs in their respective economies, supporting made-in-Canada supply chains for resources, establishing new markets for growth, and achieving Canadian energy security in the face of trade uncertainty with the United States;

Whereas Alberta and Ontario agree on the need for the federal government to address the underlying conditions that have harmed the energy industry in Canada, including significantly amending or repealing the Impact Assessment Act, as well as repealing the Oil Tanker Moratorium Act, Clean Electricity Regulations, the Oil and Gas Sector Greenhouse Gas Emissions Cap, and all other federal initiatives that discriminately impact the energy sector, as well as other sectors such as mining and manufacturing;

Whereas Alberta and Ontario are committed to fulfilling their respective duty to consult with Indigenous communities and advancing economic reconciliation in relation to new infrastructure development in Canada; and 

Whereas through cooperation and a coordinated approach, governments can better address the challenges and opportunities related to energy development, pipelines and other transmission infrastructure, refining and export infrastructure that ultimately benefits all Canadians.

Therefore Alberta and Ontario understand as follows:

1. Purpose:

The purpose of this Cooperation Memorandum of Understanding (MOU) is advancing the safe transportation and export of:

• Critical minerals, mined and processed in Canada; and
• Western Canadian oil and natural gas via pipelines to refineries, seaports, and storage facilities, including but not limited to sites in James Bay and southern Ontario.

2. Objective:

The objective of this MOU is to advance the safe transportation, domestic access and use, and international export of oil and gas and domestically-processed critical minerals by building a long-term collaborative relationship between the Parties. This Agreement creates an overarching framework that aims to facilitate, leverage, and build on Parties’ existing work and engagement with industry, Indigenous communities, and the federal government.

This MOU provides a framework to encourage strong intergovernmental cooperation and support for local and foreign investors to ensure strong environmental and economic outcomes are achieved while securing access to affordable and reliable energy for all Canadians.

By working collaboratively, the Parties will maximize the economic value of Canada’s energy resources, strengthen domestic processing and refining capacity to support made-in-Canada supply chains, and enhance Canada’s energy security and overall global competitiveness.

3. Areas of collaboration:

The Parties have identified a number of areas for collaboration, which may be expanded to include additional areas upon mutual consent:

• Development of rail infrastructure to support the subsequent phases of the Ring of Fire, including all critical mineral mining projects and the infrastructure needed to support them, as well as processing and refining capacity needed for an end-to-end Canadian critical minerals supply chain, including access to western Canadian ports.
• Joint development of commercial options for building new oil and gas pipelines, including extensions and enhancements for existing pipeline infrastructure between Alberta and refineries, seaports, and storage facilities in Ontario, particularly in both James Bay and in southern Ontario.
  • In addition, Ontario will support cross-country pipelines that connect Alberta oil and gas to new domestic and export markets beyond Ontario and work collaboratively to market Canada’s energy resources to global markets with a goal to secure expressions of interest from potential international buyers.
  • Ontario will also support consideration of strategic long-term storage of critical fuels in Canada such as the establishment of a Canadian Strategic Petroleum Reserve in Ontario with Canadian oil.
• Work collaboratively to launch a preliminary joint feasibility study in 2025 in order to help move private sector led investments in rail, pipeline(s) and port(s) projects forward.
  • Within the feasibility study, the parties will work to encourage industry to explore ways to maximize the economic benefit to Canada through the use of Canadian supply chains, including Ontario steel and components.
• Continued cooperation to advance the development of nuclear energy, including sharing of technologies and expertise in small modular reactors (SMRs) and large-scale reactors to support new nuclear facilities in Alberta and Ontario to meet growing needs of the electricity grid and industrial energy needs for power and steam.
• Immediate and coordinated action to compel the federal government to significantly amend or repeal the Impact Assessment Act, as well as repeal the Oil Tanker Moratorium Act, the Clean Electricity Regulations, and the Oil and Gas Sector Greenhouse Gas Emissions Cap to bring long term investor certainty and market confidence to the sector for these projects.
• Joint identification of other federal barriers to project development and approvals, international investor confidence, productivity and economic competitiveness to inform joint advocacy efforts for necessary reform.
• Advocacy on the essential need for federal funding commitments, to support nationally important infrastructure projects.
• Working with Indigenous communities and proponents to identify, support, and encourage commercial opportunities for Indigenous participation and equity partnerships, as well as community benefits such as labour force development and training, housing, and community infrastructure.
• Joint engagement with other interested provinces, territories and Indigenous communities to advance the goals and objectives of this MOU.

4. Coordination and implementation:

The implementation of this MOU will be overseen by a Steering Committee.

The Steering Committee will consist of the Deputy Minister responsible for Energy and/or Transportation/Infrastructure for each Party, or their designate, and may include such other members as are appointed by a Party from time to time, to pursue specific initiatives and to supervise and coordinate the planning, performance and evaluation, and approval of the activities to be carried out by the Parties in the spirit of cooperation under this MOU.

The Steering Committee will:

• Unless agreed to otherwise, meet no less than twice annually, in a manner and location convenient to both parties to review and analyze the progress of the activities under the Agreement in the interest of advancing the purpose and objectives of the MOU;
• Identify and recommend initiatives that could be pursued under the MOU that would be cost-shared equally, including examining and proposing any new initiatives as they emerge;
• Ensure the feasibility study takes into consideration the role of all potential funding options, including institutional investors and private-public partnerships;
• Ensure processes are in place to monitor and report on progress of work conducted under the MOU, as requested by the Parties; and
• As required, establish and assign any work to a joint sub-group or sub-groups to undertake due diligence, research, drafting, etc.

5. Exchange of information and confidentiality:

The Parties will seek to keep each other informed of progress and results in areas of common interest. Parties recognize and acknowledge that by the nature of their respective operations, they will be involved with not only each other, but also with third parties directly or indirectly, and that as a result of such involvement, confidential information may be generated or obtained from such third parties. Nothing in this MOU will be construed as requiring the Parties to disclose to one another any confidential information generated or obtained. Parties will each have the right to place any reasonable restrictions and limitations upon the communications and cooperation contemplated by this MOU.

The Parties acknowledge this MOU, its terms, and information exchanged among the Parties based on it, may be subject to protection, use and disclosure in accordance with access and privacy provisions of applicable freedom of information and protection of privacy legislation. The Parties will obtain written consent from the other parties prior to collecting, using, or disclosing information exchanged pursuant to this MOU, unless the information is required to be disclosed by law.

6. Effect of the Cooperation MOU:

This MOU does not constitute a legally binding agreement and is only an expression and record of the purpose and intention of the parties, to which each honourably pledge themselves.

Nothing in the MOU will be construed to affect the jurisdictional responsibility of each Party.

7. Amending the Cooperation MOU:

While the objectives expressed in the MOU may be best met by each of the Parties developing separate processes and procedures, the Parties may amend this MOU or enter into another MOU to further the objectives set out herein. This MOU may be amended through written consent signed by all Parties.

Should the Parties consent to including other Parties within this MOU, appendices may be added to the MOU containing the signatures of any future new party or parties.

8. Term:

This MOU will commence on the Effective Date expire five years from Execution Date with an option to renew for an additional five years.

This MOU may be terminated by either party with six (6) months notice.

This Memorandum will take effect upon signature by all Parties.

9. Execution:

This MOU is executed this 7^th day of July, 2025 (“Effective Date”).