The

Keystone XL pipeline

should be revived immediately and there is a strong case to be made for an energy corridor in eastern Canada including Quebec, the chief executive of

National Bank of Canada

told an industry event Tuesday.

“We need to revive Keystone right now,” Laurent Ferreira said at his bank’s annual financial services conference in Montreal. “The infrastructure is already partly built.”

The controversial Keystone XL pipeline was dealt a crippling blow in 2021 when then-U.S. President Joe Biden cancelled permits for the project that had been expected to carry oil from Alberta to Nebraska, joining an existing pipeline. Its construction was to be privately funded, largely by

TC Energy Corp.

Ferreira said more domestic energy production and distribution, as well as more global export, are necessary steps if Canada is to become an energy superpower to support the country’s security and economic sovereignty.

This includes increasing Canada’s commitment to production and distribution of

liquified natural gas (LNG)

, he said.

“We need to double down on LNG out west… (and) we need to bring natural gas to Quebec and Ontario. Manufacturing will need energy, gas flow to Quebec.”

Ferreira said a broad energy coalition in Eastern Canada also makes sense.

“There’s an economic and social case whereby we should look seriously at increasing offshore oil, natural gas, LNG in Eastern Canada, with Quebec, he said.

Ferreira said he was surprised to see a report last month that

New Brunswick was importing natural gas from Australia

. That was despite Canada’s plans a decade ago to have four LNG export terminals on Canada’s Atlantic coast.

 

“I was floored, like, Canada, really?” he said. “So I think these are things that we need to accelerate.”

He added that producing and exporting more Canadian energy would provide global trading partners with a “much safer” alternative to Venezuelan oil.

Ferreira said he is encouraged by what he sees as a shift in Ottawa over the past year and a commitment to boost domestic productivity.

 

“Finally, there’s an economic agenda and a clear focus from our government to put Canada back on track (via) productivity and being a world leader,” he said.

 

“The engagement between Ottawa and the business community is far better than it ever was, so we’re definitely feeling the engagement and the willingness to succeed.”

  • South Bow confirms open season for new pipeline to the U.S. using legacy Keystone XL permits
  • TC Energy could be open to return to B.C. LNG pipeline project as global gas crunch threatens

He said despite the progress, there are challenges in execution including the speed at which true change occurs, particularly when political motivations override economic ones.

“I wish we would go much faster,” he said, adding that the removal of interprovincial trade barriers is a specific concern.

“The cost to our economy is ridiculous. And the only thing slowing down progress… is politics, nothing else.”

• Email: bshecter@postmedia.com