EDMONTON — Premier Danielle Smith says her government is unlikely to create a Crown corporation to build new natural gas transmission lines in Alberta, rejecting a recommendation that emerged in a leaked cabinet report this week.
Government response to leaked recommendation
The leaked document advised cabinet to pursue legislation that would enable Crown corporations to spur construction of transmission lines to meet rising demand, including for oil production and data centres serving artificial intelligence operations. Smith told listeners on her provincewide radio call-in program on Saturday that while the province has heard from “dozens of companies” concerned about access to gas, she does not see a public-sector utility as necessary.
“Right now, TC Energy has a ‘monopoly’ over the natural gas market in Alberta, and we want to see more competition,” Smith said on the program.
She said the government is exploring ways to accelerate construction of new infrastructure — “to get shovels in the ground” — but that the level of private-sector interest suggests public ownership is not required.
Competition, not public ownership, preferred
Smith framed the challenge as one of supply and competition. She asserted that limiting natural gas availability will drive up energy bills for Albertans and dismissed concerns that government intervention could similarly produce higher prices.
Her remarks placed emphasis on creating a market environment where multiple firms can build and operate new pipelines and transmission assets rather than setting up a Crown entity to do the work directly.
What the leaked report recommended
According to the material that circulated inside government, the report urged advancing legislation to enable Crown corporations to accelerate new natural gas transmission lines. The goal cited was to ensure sufficient fuel to support ongoing oil production and the growth of energy-intensive facilities such as AI data centres.
Smith’s public distancing from that recommendation signals the government is leaning toward market-based solutions, while still signalling urgency about addressing perceived supply constraints.
- Leaked report: Proposed legislation and Crown corporations to spur pipeline expansion.
- Government response: Premier says Crown corporation unlikely; prefers private-sector-led expansion.
- Drivers of demand: Oil production and AI data centres cited as growth areas requiring more gas.
| Item | Leaked report | Premier’s stance |
|---|---|---|
| New transmission lines | Publicly enabled via Crown corporations | Possible, but led by private sector |
| Primary concern | Ensure supply for oil production and data centres | Address supply constraints and increase competition |
Industry reaction and next steps
Smith said the government has been contacted by numerous companies worried they may not be able to secure enough gas. She did not name those companies on the call. Her comments suggest the government will continue to pursue options to speed infrastructure projects, but with an eye to encouraging private investment and competition rather than establishing a provincially owned builder.
That stance positions the government to rely on market participants to respond to demand signals, while retaining the option to consider regulatory or legislative changes that might make it easier for new entrants or projects to proceed.
Why it matters to Albertans
Natural gas remains central to Alberta’s economy — powering oil production, serving industrial users and increasingly feeding data centres that support AI workloads. Any shortfall in transmission capacity can constrain industrial growth and push up costs for consumers and businesses alike.
By signalling an aversion to a new Crown corporation, the premier is betting the private sector can meet demand if given the right conditions. That approach will be watched closely by industry players, ratepayers and municipal leaders as the province prepares for potential infrastructure proposals and legislative moves.
For now, the conversation moves from the leaked recommendation to concrete policy decisions that will determine whether Alberta leans on market competition or public ownership to expand its gas backbone.
Reporting from citynews Calgary contributed to this dispatch.
