West Coast oil pipeline given a boost

West Coast oil pipeline given a boost

Published 2:00 pm Thursday, October 1, 2026

A West Coast oil pipeline that could pump $265 billion of royalties into Alberta’s economy over its 50-year lifetime got a big boost on Oct. 1.

Prime Minister Mark Carney was joined by Premier Danielle Smith to announce the proposed pipeline, now called Pacific Link, has been officially listed by the federal government as a project of national interest.

Carney called the pipeline project a once-in-a-generation opportunity to become a global energy superpower.

Under the Building Canada Act, projects of national interest can benefit from an accelerated approval process that provides a higher level of confidence that it will happen and not get tied up regulatory red tape for potential investors.

Premier Danielle Smith heralded the announcement as a “significant victory for Alberta’s and Canada’s energy future.

“For too long, people across Canada have watched investment leave, projects stall and opportunities slip away,” Smith said in a statement.

“Today, we are turning the page. Pacific Link represents a bold vision for Canada, one built on growth, confidence and understanding that Alberta energy should reach customers around the world.”

The pipeline is expected to cost $35 billion to $40 billion. The Alberta government and federal government, through Trans Mountain Corporation, would each own 45 per cent. Calgary-based Pembina Pipeline Corporation has signed up for a 10 per cent stake.

A proposed route would see the pipeline run from north of Edmonton through Jasper and Kamloops to the Vancouver-area terminal.

In a news conference in Fort McMurray, which is surrounded by the fourth-largest oil reserves in the world, Carney said the world is facing an energy crisis, with the daily demand of 100 million barrels per day becoming ever more volatile because of global conflicts and other factors.

Despite the growth of renewable energy sources, the International Energy Agency predicts world oil demand will continue to increase.

“The question is who will emerge as the world’s trusted suppliers? It should be us. It must be Canada,” said Carney.

It is expected a new pipeline through a southern route to an expanded Roberts Banks Superport in Delta, B.C. will provide an outlet to export one million barrels of oil per day to Asian markets.

That will help the Canadian government’s mission to reduce its reliance on U.S. buyers, who consume 90 per cent of Canada’s oil exports currently. Besides helping achieve a goal of doubling non-U.S. exports over the next decade, the new pipeline is expected to boost the nation’s GDP by $20 billion a year, government revenues by $100 billion by 2060 and create 140,000 jobs.

Carney said consultations have already been underway with various federal departments, the B.C. government and more than 130 Indigenous communities along the likely route. First Nations will be offered at least 10 per cent ownership of the completed pipeline.

Over the next year, the Major Projects Office will work with the Canada Energy Regulator to lead the federal review process and undertake consultations with stakeholders to set the conditions for the project, addressing ownership, benefits, respect for Indigenous rights, environmental protections, local hiring opportunities and oversight. That work will be done by September 2027.