Canada has announced on July 2 plans to build a new oil pipeline from Alberta to the Pacific coast, a project aimed at expanding the country’s export capacity to Asia and reducing its reliance on the United States.
Prime Minister Mark Carney announced the plan in Calgary alongside Alberta Premier Danielle Smith. Alberta’s government said construction of the 1-million-barrel-per-day pipeline could begin as early as September 2027.
Carney said the project reflects a push to balance Canada’s environmental priorities with economic pressures linked to U.S. President Donald Trump’s tariff policy.
The pipeline would transport crude from Alberta’s oil sands to southwestern British Columbia. It will be built by government-owned Trans Mountain Corp. in coordination with Pembina Pipeline Corp. No cost estimate has been released.
The federal government, through Trans Mountain, and Alberta’s government, through the Alberta Petroleum Marketing Corporation, would be the majority owners. Pembina would hold a 10% stake during construction, with the option to increase its stake by up to another 10% once the project begins operating. Smith said funding details are still under negotiation.
The provincial government has formally submitted the plan to Canada’s major projects office for possible regulatory fast-tracking.
Canada’s oil production is expected in 2026 to exceed last year’s record of 5.3 million barrels per day. At present, the country has only one route for accessing Asian markets: the Trans Mountain pipeline, which follows a similar path to the proposed new project.
