Ontario and Alberta Working Together to Build New Energy and Trade Infrastructure
July 7, 2025
Provinces sign agreements to get Ontario’s critical minerals and Western Canada’s oil and gas to new markets
On July 7, Ontario Premier Doug Ford and Alberta Premier Danielle Smith signed two Memorandums of Understanding (MOUs) to support Canadian workers by building new pipelines, rail lines and other energy and trade infrastructure that will diversify Canada’s trading partners by unlocking new markets for Ontario’s critical minerals and Western Canada’s oil and gas.
Built using Ontario steel, new pipelines will connect western Canadian oil and gas to new and existing refineries in southern Ontario and will expand export opportunities, including by way of a new James Bay deep-sea port in northern Ontario. New rail lines, also built using Ontario steel, will connect Ontario’s Ring of Fire region, critical mineral mining projects and processing facilities to western Canadian ports as Ontario builds an end-to-end critical minerals supply chain.
“In the face of President Trump’s tariffs and ongoing economic uncertainty, Canadians need to work together to build the infrastructure that will diversify our trading partners and end our dependence on the United States,” said Premier Ford. “By building pipelines, rail lines and the energy and trade infrastructure that connects our country, we will build a more competitive, more resilient and more self-reliant economy and country. Together, we are building the infrastructure we need to protect Canada, our workers, businesses and communities. Let’s build Canada.”
“Alberta and Ontario are joining forces to get shovels in the ground and resources to market,” said Premier Smith. “These MOUs are about building pipelines and boosting trade that connect Canadian energy and products to the world, while advocating for the right conditions to get it done. Government must get out of the way, partner with industry and support the projects this country needs to grow. I look forward to working with Premier Doug Ford to unleash the full potential of our economy and build the future people across Alberta and across the country have been waiting far too long for.”
To move these projects forward, Ontario and Alberta will soon launch a joint feasibility study to help determine the optimal route and endpoints for new economic and energy corridors, what financing or commercial tools may be necessary and how to best leverage home-grown supply chains to build these projects, including Ontario steel. As these projects advance, Ontario and Alberta will continue to fulfill their duty to consult with Indigenous communities.
As part of the MOUs, Ontario and Alberta agreed to advocate for a federal regulatory environment that encourages private-sector investments in new energy and trade infrastructure projects, as well as to cooperate to advance the development of nuclear energy, including sharing of technologies and expertise in small-modular 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.
Ontario and Alberta also agreed to support the prioritization of made-in-Canada vehicles for the Alberta government’s fleet of vehicles and to support the increased presence of Alberta beer, wine, liquor and other alcoholic beverages on Ontario store shelves. These measures build on the MOU that was signed between Ontario and Alberta on June 1, 2025 in Saskatoon, with the aim of tearing down trade barriers between the two provinces.
Since April 2025, Ontario has signed agreements supporting the removal of interprovincial trade barriers with six provinces. Ontario also passed the Protect Ontario Through Free Trade Within Canada Act, which received royal assent on June 5, 2025, and was the first jurisdiction in Canada to eliminate all of its party-specific exceptions under the Canadian Free Trade Agreement. With this new legislation and growing number of signed MOUs, Ontario is leading the country in expanding the trade of goods and services across Canadian jurisdictions, cutting the unnecessary red tape holding back Canadian businesses and opening new pathways for the movement of qualified, in-demand workers throughout the country.
Two-way trade in goods and services between Ontario and other provinces and territories was valued at more than $326 billion in 2023. The Ontario government will continue to work with its federal, provincial and territorial partners through the Canadian Free Trade Agreement and other trade-enhancing initiatives to advance interprovincial trade across Canada.
Quick Facts
- The total value of annual interprovincial trade between Ontario and Alberta for 2021 (the most recent year for which figures are available) was $62.4 billion.
- In 2023, Ontario exported $183.9 billion of goods and services to other provinces and territories and imported $142.7 billion, resulting in two-way trade of $326.6 billion and a trade surplus of $41.2 billion.
- Ontario recently launched its $50 million Ontario Together Trade Fund to assist local businesses in taking advantage of new interprovincial trade opportunities.
- Thirty-five per cent of Canada’s overall trade takes place within its own borders.
- Ontario is committed to fulfilling its duty to consult with Indigenous partners and communities, while supporting their involvement in nation-building projects with historic funding to help First Nations become equity partners.
Quotes
“In signing these two new agreements with Alberta, our government is advancing Ontario’s commitment to building a more integrated and prosperous Canadian economy, while leveraging the strength of our critical mineral and steel manufacturing supply chains. By tearing down interprovincial trade barriers and investing in strategic infrastructure, we are strengthening vital industries, attracting new investment and ensuring a resilient, prosperous future for businesses and workers here at home and across the nation.”
– Vic Fedeli
Minister of Economic Development, Job Creation and Trade
“There has never been a more pressing time to build one strong Canadian economy. Ontario’s Integrated Energy Plan is laying the groundwork for an east-west energy corridor, anchored by nation-building infrastructure and pipelines that finally gets our resources to tidewater. The time is now to send President Trump a message: Canadians are ready to move with speed to protect our economy and sovereignty.”
– Stephen Lecce
Minister of Energy and Mines
“These agreements reflect the spirit of true Canadian collaboration. By working side by side with Alberta, we’re advancing shared priorities — strengthening domestic supply chains, leveraging Canadian expertise and resources and delivering better value for taxpayers through smart, nation-building procurement. Together, we are building a more resilient, more self-sufficient Canada that supports workers, businesses and communities from coast to coast.”
– Stephen Crawford
Minister of Public and Business Service Delivery and Procurement
Related Story
Government of Canada Introduces Legislation to Build One Canadian Economy
On June 6, the Honourable Dominic LeBlanc, President of the King’s Privy Council for Canada and Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs and One Canadian Economy, introduced new legislation to build a stronger, more competitive, and more resilient Canadian economy.
One Canadian Economy: An Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act, will remove federal barriers to internal trade and labour mobility, and advance nation-building projects crucial for driving Canadian productivity growth, energy security, and economic competitiveness.
