The federal and Alberta governments have declared a proposed pipeline that will transport one million barrels of oil daily from Alberta to the British Columbia coast as the first project to be designated in the national interest.
By adding the West Coast pipeline — now officially named the Pacific Link pipeline — to Schedule 1 of the Building Canada Act, the federal government has transitioned from deliberating its viability to focusing on its construction by accelerating and streamlining the approval process, which includes environmental reviews.
“Prior to the Building Canada Act, developers were required to invest years and potentially billions of dollars into this work without knowing the federal government’s stance on the project,” stated Carney during a press event in Fort McMurray, Alberta, on Thursday.
“For numerous builders, the risk was simply not justified. Consequently, Canada ceased to build. Now, the federal government is clarifying its position at the outset of the process, instead of waiting until it concludes.”
Prime Minister Mark Carney announced that the West Coast Pipeline, known as Pacific Link, will be listed as a project of national interest under the Building Canada Act, allowing the government to fast-track the approval process.
A high-ranking government official informed the press prior to the announcement that the pipeline is anticipated to enhance Canada’s GDP by as much as $30 billion each year, with $20 billion of that directly attributed to the pipeline itself.
Officials mentioned that by diversifying Canada’s oil exports away from the U.S., the country would be able to command higher prices for oil currently exported south, potentially generating an additional $10 billion in annual revenue.
Furthermore, the federal government indicated that upon approval, the project could create up to 140,000 jobs.
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Dominic LeBlanc, the minister overseeing one Canadian economy, has been assigned the task of finalizing a conditions document that outlines the project’s requirements by September 1, 2027, which will enable construction to commence with the goal of having the pipeline operational by 2032-33.
Carney noted that the process of developing these conditions will be facilitated by the Major Projects Office and the Canada Energy Regulator, who will engage with stakeholders to establish environmental safeguards, regulatory oversight, Indigenous ownership, and local employment opportunities.
The projected cost for the project ranges from $35.2 billion to $43.7 billion, which includes a contingency fund.
The Alberta government and the federally owned Trans Mountain Corporation will each hold a 45 percent stake in the pipeline, while the Calgary-based Pembina Pipeline Corporation will own 10 percent during the construction phase.
Once the pipeline becomes operational, Pembina Pipeline Corporation will have the option to acquire an additional 10 percent stake.
Carney affirmed that Indigenous communities will be given at least a 10 percent ownership interest in the project.
Increasing private sector ownership
Although the pipeline is primarily owned by the federal and Alberta governments at 90 percent, a senior official, speaking on background, indicated that there are investors ready to participate.
This official mentioned that potential investors are closely watching to see if Canada can successfully expedite the approval and construction of the Pacific Link by 2032-33.
Workers lay pipe during construction of the Trans Mountain pipeline expansion on farmland, in Abbotsford, B.C., in 2023. A new West Coast pipeline will ship one million barrels of oil a day from Alberta to the B.C. coast once it opens in 2032-33. (Darryl Dyck/The Canadian Press)
These investors remain cautious, the official noted, due to the complicated approval processes associated with the Trans Mountain Pipeline and the duration it took to construct.
Alberta Premier Danielle Smith expressed to CBC’s Power & Politics that she perceives government involvement in this pipeline as a means to motivate private investors to take the lead on future initiatives.
“To instill confidence in the industry that we can bring these significant projects to fruition, we must accompany them at every step until completion,” she told host David Cochrane.
As Alberta’s proposed pipeline to the West Coast becomes the first project to be designated in the national interest by the federal government, it still lacks a private proponent. With 90 per cent set to be publicly owned — with more potential private investment to come — Alberta Premier Danielle Smith says the public-private partnership to build the pipeline will grow industry confidence.
Carney emphasized that Thursday’s announcement — involving Alberta, B.C., and Indigenous communities — along with the fact that Canada’s effective tax rate for investments has been reduced to below a third of the G7 average, are compelling reasons for private investors to engage with the project.
“This is the premier investment destination globally, and I am confident that companies across the nation will recognize this,” he remarked.
Higher emissions, lower intensity
The announcement on Thursday was positively received by business organizations like the Canadian Chamber of Commerce, which praised the Liberal government for providing early regulatory support for the initiative.
“Facilitating our resources to reach Asia-Pacific markets is a pathway to enhanced production, prosperity, and a brighter future for workers, their families, and their communities,” stated Bryan Detchou from the chamber in a release.
Conversely, environmental groups such as Greenpeace and the Pembina Institute criticized the move, arguing that Canada should not be increasing its oil extraction efforts.
“New oilsands operations and pipeline projects will exacerbate emissions,” the Pembina Institute, which is not affiliated with the pipeline corporation, expressed in a message on X.
“Every fraction of a degree counts. Canada needs to invest in cleaner, more sustainable energy alternatives.”
Prime Minister Mark Carney said designating the Pacific Link pipeline in the national interest shows ‘Canada is working,’ when asked what message Albertans supporting a separation referendum should take from the announcement.
According to a government explanatory note, while the pipeline itself “does not directly contribute to Canada’s greenhouse gas emission reduction targets,” it is integral to strategies aimed at decreasing emissions intensity, or emissions per barrel of oil produced.
This initiative includes the Pathways Project, a carbon capture and storage program that Carney claims will capture up to 16 million tonnes of carbon emissions each year and store them underground.
Rick Smith, president of the Canadian Climate Institute, mentioned during Power & Politics that Canada is far from achieving its emission reduction goals. He emphasized the necessity for the government to implement additional climate policies in light of this new project.
“Pollution reduction from this increased oil production will only occur if Canada addresses its ineffective climate change policies,” he advised Cochrane. “But it’s a work in progress.”
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Carney stated that the Pathways Project is merely one aspect of his government’s environmental mitigation measures, which also encompass $1.2 billion in federal funding for ocean conservation initiatives announced recently.
Carney noted that opting for a southern route, as opposed to one through northern British Columbia, will prevent the project from traversing “highly sensitive ecosystems, including the Great Bear Sea.”
The 1,200-kilometer pipeline will transport bitumen from Bruderheim, Alberta, to a deepwater port near Delta, British Columbia, where enhancements will be made to the infrastructure at the Roberts Bank terminal.
Carney indicated that the new funding for oceans will include “various measures to safeguard the habitats of killer whales” during the expansion of Roberts Bank.
The federal government’s explanatory note states that an agreement in principle with Alberta aims to cut methane emissions by 75 percent below 2014 levels by 2035, a crucial element of “Canada’s strategy to reinforce its standing in global energy markets, as international customers increasingly prioritize low-carbon oil and gas.”
NDP and Conservatives weigh in
NDP Leader Avi Lewis criticized the Liberal government for hastily advancing the project through the approval process “while disregarding environmental safeguards.”
“This is an affront to Canadian science, public health, collective safety, and common sense. It serves as a boon to an oil industry already poised to generate $100 billion in wartime profits this year,” he declared.
“Canadians are left with all the risks of a poor investment while reaping none of the benefits.”
- Just Asking wants to know: What questions do you have about Prime Minister Mark Carney’s plan to fast-track major projects and how that plan would affect environmental protection? Send us your questions before our Oct. 3 show.
Conservative Leader Pierre Poilievre expressed his party’s strong backing for the pipeline and congratulated Premier Smith for her advocacy of the project.
“It has taken Mark Carney nearly a year and a half to list a single proposal as being in the national interest. We require a pipeline constructed, not just listed,” he asserted.
“The federal government must step aside and allow builders to build, investors to invest, and workers to work.”