Canada and Alberta have taken a major step toward advancing a major west coast oil pipeline, with the federal government referring the proposal to the Major Projects Office for assessment as a project of national interest.
The proposed pipeline is designed to transport approximately one million barrels per day of crude oil using the existing Trans Mountain corridor, while remaining compliant with the Oil Tanker Moratorium Act.
Structured as a joint initiative, the project will see the Government of Canada and the provincial government of Alberta each hold equal ownership stakes.
A substantial equity allocation has also been reserved for Indigenous partners, with consultations set to begin immediately.
The Major Projects Office, established in August 2025, has initiated the process of determining whether the development should be listed under the Building Canada Act.
If granted national interest status, the pipeline would benefit from a streamlined regulatory pathway that maintains environmental protections and upholds Indigenous rights.
The review will include consultation with provinces, territories and Indigenous communities, as well as formal engagement with the Government of British Columbia.
Private sector participation is already taking shape. Pembina Pipeline has signed a non-binding heads of agreement with both levels of government and Trans Mountain, positioning itself to provide technical and operational expertise.
Pembina will initially hold a 10 per cent economic interest during construction, with the option to increase its stake to 20 per cent once the project reaches commercial operation.
Trans Mountain will take a leading role across key delivery functions, including construction, regulatory approvals, stakeholder engagement and ongoing operations.
Pembina’s final participation remains contingent on meeting project milestones and internal investment criteria, with no at-risk capital committed prior to a final investment decision.
Pembina president and CEO Scott Burrows said: “The project represents a once-in-a-generation opportunity to advance nation-building energy infrastructure that strengthens Canada’s economy and expands access to global markets for Canadian energy.”
The pipeline initiative is being advanced alongside broader decarbonisation efforts. In partnership with the Oil Sands Alliance, the federal and Alberta governments have reaffirmed their commitment to the Pathways Project, a large-scale carbon capture and storage initiative.
The project aims to reduce emissions by 16 million tonnes annually and is positioned to become one of the largest developments of its kind globally.
Combined, the pipeline and Pathways Project are expected to deliver substantial economic benefits.
Nationally, construction and operations are projected to support approximately 175,000 jobs, including up to 140,000 linked to the pipeline and a further 40,000 supported annually through Pathways.
The carbon capture initiative alone is forecast to contribute more than C$16 billion to Canada’s gross domestic product.
Alberta Premier Danielle Smith emphasised the strategic importance of expanding export infrastructure.
She said: “Canada has everything it needs to become an energy superpower but only if we build the infrastructure to get our resources to market.
“Alberta has done its part by putting forward a responsible, world-class proposal and selecting the strongest route to Canada’s west coast.
“A west coast oil pipeline will create tens of thousands of jobs, generate tens of billions in new provincial and federal revenues, and make Canada more secure and self-reliant.
“This project will define Alberta’s and Canada’s economic future.”
The latest developments build on a memorandum of understanding signed between the federal government and Alberta in November 2025, followed by an Implementation Agreement finalised in May 2026.
These agreements established the framework for collaboration, investment structure and regulatory coordination.
Indigenous participation remains a central component of the project’s design.
Beyond equity ownership, the initiative is expected to create business opportunities, employment and training pathways for Indigenous communities.
Government statements indicate that these partnerships are intended to support long-term economic development and shared prosperity.
As the Major Projects Office proceeds with its evaluation, the project’s designation as a national interest initiative will be a critical determinant of its timeline and regulatory trajectory.
