Key facts
- A new oil pipeline to Canada's Pacific coast has been approved by Alberta and Ottawa.
- The pipeline will be built by Trans Mountain Corp. and have a capacity of 1 million barrels daily.
- The Canadian federal government and the government of Alberta will be the majority owners.
- Pembina will hold a 10% stake in the project.
- The pipeline's terminus is in southwestern British Columbia, while a tanker ban remains on the North Coast.
Alberta and Ottawa have officially announced the construction of a new oil pipeline to Canada's Pacific coast, aiming to enhance access for Canadian oil producers to Asian markets. This decision marks a shift from previous Liberal government policies that had sidelined pipeline expansion due to environmental concerns. Prime Minister Mark Carney, despite past support for the energy transition, has indicated a willingness to compromise to bolster Canada's global oil and gas market presence.
The announcement comes shortly after Carney upheld a ban on tankers along British Columbia's North Coast, a move that effectively closes off a key export route for vessels loading from the new pipeline. Consequently, the pipeline will terminate in southwestern British Columbia.
The new conduit, to be built by Trans Mountain Corp., will have a capacity of 1 million barrels per day. Majority ownership will rest with the Canadian federal government and the government of Alberta, with Pembina holding a 10% stake as a construction partner. Canada's oil production is projected to reach 5.3 million barrels daily this year, with the existing Trans Mountain pipeline currently operating at full capacity due to increased demand. Trans Mountain Corp. is already planning to increase its current capacity from 890,000 barrels daily to 1.2 million barrels daily by 2029.