Key facts
- Canada is fast-tracking a proposed 1 million-barrel-per-day oil pipeline to the Pacific coast.
- The project aims to provide Alberta with an alternative route to Asian buyers.
- The federal review process is targeted for completion by September 1, 2027.
- Trans Mountain Corp. and Pembina Pipeline will lead the project.
- Indigenous communities will be offered at least 10% ownership.
- Alberta estimates construction costs between C$35.2 billion and C$43.7 billion.
Canada is accelerating plans for a 1 million-barrel-per-day oil pipeline to the Pacific coast, aiming to provide Alberta with an alternative route to Asian markets and reduce its reliance on the U.S. Prime Minister Mark Carney announced Thursday that the project will be designated as one of national interest, streamlining it through a single federal review process targeted for completion by September 1, 2027. Construction could potentially begin shortly after the review concludes.
The pipeline would extend from Alberta to southern British Columbia, largely following the existing Trans Mountain corridor. Trans Mountain Corp. and Pembina Pipeline are set to lead the initiative, with the federal and Alberta governments anticipated to hold the majority stake. Indigenous communities will be offered at least 10% ownership.
Alberta estimates the construction costs to range between C$35.2 billion and C$43.7 billion. The Canadian government projects the pipeline could generate over C$20 billion in annual GDP, create up to 140,000 jobs during peak construction, and yield C$100 billion in government revenue by 2060.
Currently, over 90% of Canada's crude exports are sent to the United States. The existing Trans Mountain pipeline, with a capacity of 890,000 bpd, is already operating at full capacity. The value of Pacific access has increased due to disruptions in Middle Eastern oil flows and Asian refiners seeking alternative supplies outside the Strait of Hormuz. China is reportedly the largest buyer of Trans Mountain's seaborne exports, accounting for approximately 60% of shipments.
Ottawa and Alberta are also working to increase capacity on the existing Trans Mountain system by an additional 300,000 to 400,000 bpd. The new pipeline still requires a final route selection, regulatory approvals, and consultation with Indigenous communities and British Columbia.