Project would cut Canadian oil dependency on US from 90% to 65-70%
The Pacific Link pipeline would run 1,250km (775 miles) from Bruderheim, Alberta, to a deep-water port near Delta, British Columbia. The project is designed to carry approximately one million barrels per day of crude oil, with marine berths able to accommodate vessels carrying up to two million barrels. From the British Columbia coast, the crude would be shipped to global markets.
Carney said the project is expected to boost Canada’s GDP by up to C$30 billion (about $21 billion; £16 billion) per year and create 140,000 jobs. He positioned the announcement as central to his pitch to global investors that Ottawa can move quickly to build major projects and turn Canada into a global energy “superpower.”
“A pipeline to the west coast is part of our mission to transform our economy, to double our non-US exports over the next decade,” Carney said.
The prime minister positioned Pacific Link as a response to what he described as the economic vulnerability exposed by US protectionist tariffs imposed by President Donald Trump. Last year, Canada sent 90% of its crude oil exports south of the border. Ottawa said Pacific Link would reduce Canada’s overall dependency on the US to approximately 65-70% by opening the Asia-Pacific market, including key buyers in South Korea, China, and Japan.
Pacific Link will be the first project to have its federal approvals and regulatory reviews fast-tracked under a law put in place last year by the Liberal government. The goal is to give investors a final yes-or-no decision on a proposed project within a year.
“People are watching very closely how Canada is handling this process,” a government official said in a media briefing Thursday. The official added that, if the review proceeds as planned, Ottawa expects more private investment to express interest in the project. The pipeline is projected to cost between C$35.2 billion and C$43.7 billion.
Fierce opposition and Canada’s lengthy and complex project review process have contributed in the past to some pipeline projects being cancelled. Under the current schedule, construction is to begin by 2032 if Pacific Link receives final approval.
The federal and Alberta governments are currently backing the project, along with one private investor: the Pembina Pipeline Corporation, which has a non-binding agreement for a 10% stake during construction and the option for another 10% once the pipeline is operational. A minimum of a 10% ownership stake will also be offered for purchase to Indigenous groups.
The project carries political weight in Alberta, where Albertans are scheduled to vote later this month in a referendum on independence. When asked whether he had a message for the province, Carney called Pacific Link “a demonstration of the power of Canada.” The pipeline is intended in part to address long-standing Alberta grievances that the landlocked province has been hampered from developing its resources.
Carney said discussions with many Indigenous communities have already taken place, with “intensive” consultations to come. The project is likely to face pushback from environmental groups, especially over concerns about the impact on coastal marine health, and from some Indigenous communities along the route.
As part of the agreement, Alberta has agreed to develop what the federal government describes as the world’s largest carbon capture programme in a bid to reduce the province’s overall emissions. Ottawa has also worked to shore up ocean protection funding and rules to protect marine life that could be affected by increased coastal tanker traffic, including the endangered Southern Resident killer whales.