Ontario Unveils Vision for Sarnia Refinery Expansion

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. “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.