- Canada has designated a proposed 1 million-bpd pipeline to the Pacific coast as a project of national interest.
- The C$35.2 billion–C$43.7 billion project could expand access to Asian markets and reduce Canada’s reliance on US crude exports.
Canada has fast-tracked a proposed 1 million-barrel-per-day oil pipeline from Alberta to the Pacific coast, creating another route to Asian markets and reducing the country’s dependence on the United States.
Prime Minister Mark Carney said Ottawa would designate the project as a national-interest project. The decision will place the pipeline under a single federal review process, which Ottawa aims to complete by September 1, 2027.
The proposed pipeline would connect Alberta with southern British Columbia and largely follow the existing Trans Mountain corridor. Trans Mountain Corp. and Pembina Pipeline would lead the project, while the federal and Alberta governments would hold the majority stake.
The project would also offer Indigenous communities at least 10% ownership. However, developers still need to finalise the route and secure regulatory approvals and Indigenous and British Columbia consultations.
Alberta estimates construction costs between C$35.2 billion and C$43.7 billion. Ottawa estimates that the project could generate more than C$20 billion in annual GDP and create up to 140,000 jobs during peak construction.
The federal government also projects about C$100 billion in government revenue through 2060. These economic benefits would come alongside increased crude export capacity and greater access to international markets.
Canada currently sends more than 90% of its crude exports to the United States. Meanwhile, the 890,000-bpd Trans Mountain pipeline provides the country’s main Pacific export route but already operates at capacity.
The proposed project has gained strategic importance as Asian refiners seek alternative crude supplies following disruptions to Middle Eastern oil flows. China has already become the largest buyer of Trans Mountain’s seaborne exports, taking about 60% of shipments, according to the Canadian government.
Ottawa and Alberta are also pursuing an additional 300,000 to 400,000 bpd of capacity on the existing Trans Mountain system. Together, the projects could provide Canadian producers with greater flexibility in reaching international buyers.
The new pipeline still requires a final route, regulatory approvals and consultations with Indigenous communities and British Columbia before construction can begin.