Ottawa and Alberta announce plans to fast-track a $35-billion to $44-billion pipeline, targeting construction by 2027 and operations by 2032–33.
Prime Minister Mark Carney and Alberta Premier Danielle Smith announced Thursday that the proposed West Coast Pacific Link oil pipeline has become the first project designated as being in the national interest under the Building Canada Act.
The pipeline, designed to transport one million barrels of oil daily from Alberta to British Columbia’s coast, will benefit from an accelerated federal approval process, including streamlined environmental assessments.
Speaking in Fort McMurray, Alberta, Carney said the designation provides greater certainty to investors by establishing the federal government’s support at the beginning of the approval process rather than after years of costly assessments.
The project is expected to contribute up to $30 billion annually to Canada’s GDP, according to federal officials. Approximately $20 billion would come directly from the pipeline, while another $10 billion could be generated through higher oil export revenues as Canada diversifies its energy markets beyond the United States.
The federal government estimates that the project could create up to 140,000 jobs once approved.
Construction targeted for 2027, operations by 2032–33
Dominic LeBlanc, the minister responsible for one Canadian economy, has been tasked with finalizing the project’s conditions by September 1, 2027, with construction expected to begin afterward.
The government aims to have the pipeline operational by 2032–33.
The Major Projects Office and Canada Energy Regulator will oversee consultations with stakeholders to establish environmental safeguards, regulatory oversight, Indigenous ownership arrangements and local employment requirements.
The pipeline’s estimated construction cost ranges from $35.2 billion to $43.7 billion, including contingency funding.
Under the proposed ownership structure, the Alberta government and federally owned Trans Mountain Corporation would each hold a 45 per cent stake, while Calgary-based Pembina Pipeline Corporation would own the remaining 10 per cent.
Carney also announced that Indigenous communities would be offered a minimum 10 per cent ownership stake in the project.
Ottawa seeks private investment
Despite the project’s initial reliance on federal and provincial ownership, Ottawa expects private investors to participate as the pipeline advances.
A senior government official said potential investors are closely watching whether Canada can successfully accelerate regulatory approvals and complete construction within the proposed timeline.
The lengthy approval process and construction delays associated with the Trans Mountain pipeline expansion have made some investors cautious about committing to another major energy infrastructure project.
Carney argued that cooperation among Alberta, British Columbia and Indigenous communities, combined with Canada’s investment tax incentives, would help attract private capital.
He also highlighted the federal government’s reduction of Canada’s effective tax rate on investment to less than one-third of the G7 average.
The national-interest designation marks a significant step in Ottawa’s efforts to accelerate major infrastructure development, expand access to international energy markets and reduce Canada’s dependence on the United States as its primary oil export destination.
