Ontario Unveils Vision for Sarnia Refinery Expansion

SARNIA — As part of its plan to protect Ontario and build a stronger, more self-reliant economy, the Ontario government recently announced the Northern Shield Energy Corridor, a proposed 3,300-kilometre pipeline that would connect Alberta’s oil sands to Sarnia’s world-class refining and petrochemical complex, one of the country’s most important industrial hubs. Built with Ontario steel and by Ontario workers, this nation-building project would create good-paying jobs in Ontario while reinforcing Sarnia’s role as the eastern gateway of a modern, coast-to-coast Canadian energy network.

“Canadians know that we can no longer depend on the U.S., we must build energy corridors and pipelines that are sovereign to Canada,” said Stephen Lecce, Minister of Energy and Mines and MPP for King—Vaughan. “Nowhere is the opportunity greater than in Sarnia, home to one of North America's largest refining and petrochemical complexes, a highly skilled workforce, and the industrial capacity to anchor Canada's energy future. Advancing the Northern Shield Energy Corridor means we can connect Alberta crude directly to Sarnia — averting the threat of pipeline closures by the U.S., while refining more Canadian oil here at home. Ontario is also exploring Canada's first Strategic Petroleum Reserve to protect against global supply disruptions and enhance Canadian energy security. Our government’s vision is for Sarnia to emerge as Canada's national refining and energy resilience hub, strengthening our economic sovereignty and ensuring Canadian energy powers Canadian prosperity."

For more than a century, Sarnia has been the heart of Canada’s energy economy. The region’s legacy began in nearby Oil Springs and Petrolia, where North America’s first commercial oil fields launched a new industry that transformed the continent. Today, the region is home to one of North America’s largest refining and petrochemical clusters that transforms Canadian energy into the fuels that power homes, businesses, and industry across the country. The proposed Northern Shield Energy Corridor will protect thousands of existing manufacturing, refining and energy jobs across the Sarnia region, while creating thousands of new good-paying opportunities for Ontario workers during construction and long-term operations. As part of this effort, Ontario is also undertaking a feasibility study to establish a Strategic Petroleum Reserve (SPR) using existing refining, storage and distribution infrastructure. An SPR would provide a secure domestic stockpile of critical fuels to help protect Canadian families, businesses and essential services during emergencies while strengthening Canada's long-term energy security.

"I fully support Premier Ford's vision for the Northern Shield Energy Corridor,” said Bob Bailey, MPP for Sarnia-Lambton. “Connecting Alberta’s vast energy resources to the Sarnia-Lambton Petrochemical Hub through a new, fully Canadian pipeline is the perfect example of a nation-building project that can power our collective economic growth for generations to come. I look forward to the completion of the feasibility study later this year and will do everything in my power to support and advance the Ontario government's vision for the Northern Shield Energy Corridor."

Canada is the world's fourth-largest producer and exporter of crude oil, yet more than 90 per cent of our oil is still sold to a single customer at a discount, costing Canada’s economy billions every year. In 2025, Canada reached a record 5.35 million barrels of crude oil production per day, underscoring the need for modern infrastructure that keeps more Canadian energy on Canadian soil. The Northern Shield Energy Corridor will build on Sarnia’s legacy by establishing the region as the eastern anchor of a secure, made-in-Canada energy supply chain. Built with Ontario steel, the pipeline would move an estimated 500,000 barrels per day of crude oil and expand to up to 800,000 barrels per day as demand grows.

“It is positive to see Ontario and Alberta working together on nation-building infrastructure.” said Mike Bradley, Mayor of the City of Sarnia. “As Eastern Canada's Energy Hub, Sarnia-Lambton understands the importance of secure, reliable energy for our region and for the country, and we welcome the potential opportunities this project could bring all Canadians.”

As part of Energy for Generations, the government’s first-ever integrated energy plan, Ontario introduced pipeline principles to support the development of safe, reliable, and nation-building energy infrastructure that strengthens Canada’s energy security and economic resilience. Together with record investments in electricity generation, transmission, and other critical energy infrastructure, the plan will ensure Ontario has the reliable, affordable energy to power new homes, attract investment, and drive economic growth. This approach is providing the certainty needed for Indigenous communities, municipalities, businesses and industry partners to invest confidently in Ontario’s future. With a clear path forward, the plan is not only meeting the demands of today, but it is protecting jobs, supporting workers and powering economic growth for generations to come.

Quick Facts

• The proposed 3,300-kilometre pipeline announced by Premier Doug Ford and Alberta Premier Danielle Smith would travel east from Hardisty, Alberta to Ontario’s refining belt in Sarnia.

• Ontario is exploring pipeline extensions to new and existing ports, creating new opportunities to bring Canadian oil to new tidewater to reach new markets abroad.

• The proposed route would provide the Government of Manitoba and the Manitoba-Crown Indigenous Corporation with the opportunity to explore the feasibility of a pipeline extension to the Port of Churchill.

• Ontario is advancing a feasibility study on the corridor that includes defining estimated costs and examining commercial models and related development opportunities for the energy corridor, including grid upgrades and potential strategic petroleum reserves. The feasibility study is expected to be completed by the end of 2026.

• Ontario has also initiated its duty to consult with Indigenous partners and communities on the corridor, while supporting Indigenous involvement in nation-building projects.

Quotes

"The Northern Shield Energy Corridor is a once-in-a-generation opportunity to connect our country, strengthen energy security and drive economic growth. With Sarnia serving as the terminal point of the proposed pipeline, this project would reinforce the city’s role as a critical energy hub, create local jobs and support Ontario’s construction and manufacturing sectors. By investing in this historic nation-building project, we can help build a stronger, more resilient Ontario for generations to come."

- Todd McCarthy

Acting Minister of Infrastructure

"Investments in critical energy infrastructure are paramount for the continued success of the large numbers of refineries in St. Clair Township, The Shell refinery alone refines around 85,000 barrels of crude a day. These industries support local employment municipal assessment growth, economic development and the many businesses, contractors and families that rely upon a strong industrial sector. I thank Energy Minister Lecce and the Ford Government for the announcement of the Northern Shield Pipeline last week."

- Jeff Agar

Mayor, St. Clair Township

"Lambton County welcomes today's announcement and the potential opportunities for local workers, businesses, and the regional economy. Our highly skilled workforce and strong industrial base have long supported major energy and manufacturing investments, and we look forward to learning more about the project and the work ahead."

- Kevin R. Marriott

Warden, Lambton County

"Kel-Gor has called Sarnia-Lambton home since 1969, and news like this is what communities like ours have been waiting a long time to hear. A project of this scale means real work in fabrication, construction, and maintenance, and nobody is better prepared to deliver it than the skilled trade and union workers of this region. The Northern Shield Energy Corridor isn't just about jobs. It's about families, and the communities where we work and live. Kel-Gor is ready. Sarnia-Lambton is ready. Let's build this."

- Caroline McKenzie

General Manager, Kel-Gor

"APPrO strongly supports the Northern Shield Energy Corridor and agrees that energy security is fundamental to both Canada's national security and long-term economic prosperity. Canadians cannot afford to leave our sovereignty or our economic future in the hands of others. We must take responsibility for securing both. By launching the Northern Shield Energy Corridor, the Government has taken an important step toward strengthening Canada's energy resilience while advancing a nation-building project that will enhance our security, competitiveness, and prosperity for generations to come."

- Colin Anderson

President and CEO, APPrO

"The Ontario Chamber welcomes the government’s bold ambition and commitment to strategic infrastructure that strengthens our energy security. We look forward to working together to review and refine the business case for its plan through partnership between business, governments, and Indigenous communities."

- Daniel Tisch

President and CEO, Ontario Chamber of Commerce

"AMPCO welcomes the Northern Shield Energy Corridor as an important investment in Canada's industrial future. The project will strengthen the competitiveness of Ontario's petrochemical and refining sectors while creating significant opportunities for the province's steel manufacturers and industrial supply chain. Together with investments in electricity infrastructure, it will help support long-term industrial growth, jobs and economic resilience. Many AMPCO members will benefit from this initiative."

- Brad Duguid

President, AMPCO

"For years, our local industries have navigated geopolitical vulnerabilities, particularly the ongoing threats to Line 5. Minister Lecce and Premier Ford are exactly right: Ontario needs a sovereign pipeline route. Connecting Alberta's vast resources directly to Sarnia's highly specialized refineries isn't just an economic opportunity, it is an absolute necessity for national energy security. Sarnia stands ready to serve as the vital eastern anchor for this nation-building project."

- Steve Crozier

Interim CEO, Sarnia-Lambton Chamber of Commerce

"Canada Powered by Women is pleased to see the Ontario government taking bold action to advance the Northern Shield Energy Corridor. The engaged women we speak with across the country consistently tell us they want to see Canada, and the provinces, take initiative when it comes to responsible energy development. They understand that a strong economy and energy security are foundational to our families' prosperity and future. By linking Canadian resources directly to Sarnia’s world-class refining hub, this project represents the exact kind of forward-thinking, nation-building infrastructure we need to secure our domestic supply chain, to create and protect jobs, and ensure long-term affordability and a thriving economy for Ontario and Canada."

- Tracey Bodnarchuk

CEO, Canada Powered by Women

"The Canadian Fuels Association welcomes the focus by the Alberta and Ontario governments on strengthening Canada's energy security and building a more resilient domestic energy system. Canada must continue to enhance energy supply reliability, strengthen domestic supply chains, and support the long-term competitiveness of the country's refining sector and broader energy industry. These efforts will help strengthen Canada's economy while ensuring Canadians have access to reliable energy today and in the future."

- Bob Larocque

President and CEO, Canadian Fuels Association

"Reliable energy infrastructure is a critical foundation for Ontario's continued growth. As our province works to build more homes and attract new investment, long-term planning for modern energy infrastructure will help provide the certainty needed for builders, communities and industry to move projects forward. We support investments that strengthen Ontario's infrastructure network and help ensure our province remains competitive and prepared for future growth."

- Scott Andison

CEO, Ontario Home Builders' Association

"The Sarnia-Lambton Economic Partnership welcomes the advancement of the Northern Shield Energy Corridor. With the Sarnia-Lambton Energy & Chemistry Cluster representing eastern Canada’s largest integrated energy, refining, and chemicals manufacturing hub, the project represents a critical means of redundancy for existing operations, a pathway to energy security, and a mechanism to create additional capacity for future economic growth. By ensuring long-term feedstock security for local refineries and manufacturers through a wholly Canadian located energy supply chain, the corridor will help protect existing jobs, attract new investment, and strengthen Canada’s energy and economic resilience."

- Matthew Slotwinski

CEO, Sarnia-Lambton Economic Partnership

Additional Resources

Northern Shield Energy Corridor

Energy for Generations

MEDIA CONTACT                                                                                              

Stephen Lecce, MPP for King—Vaughan

Constituency Office

Tel.: 647-560-9700        

Email: Stephen.Lecce@pc.ola.org