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Canada will fast-track approval of a proposed 1,250km (775-mile) oil pipeline to the Pacific coast, Prime Minister Mark Carney said on Thursday, describing the project as important to the country’s economic interests. Reuters reported the announcement.
Carney said the Pacific Link project would help Canada diversify its oil markets beyond the United States and support a goal of doubling non-US exports over the next decade.
He said the project could add as much as C$30 billion ($21 billion; £16 billion) a year to Canada’s gross domestic product and create 140,000 jobs. It would also test his pledge to investors that the government can speed up construction of major projects as it seeks to make Canada an energy “superpower”.
How the pipeline would change oil exports
Last year, Canada sent 90% of its crude oil exports to the United States. Carney said that reliance had become a vulnerability amid protectionist tariffs imposed by US President Donald Trump.
Pacific Link would transport about one million barrels of crude oil a day from Bruderheim, Alberta, to a deep-water port near Delta, British Columbia. The project also includes marine berths for vessels capable of carrying up to two million barrels of oil, which would then be shipped to global markets.
The Canadian government expects the project to reduce the country’s overall dependence on the US to about 65% to 70% by opening access to Asia-Pacific markets, including South Korea, China and Japan.
Fast-track review and investment
Pacific Link will be the first project to receive expedited federal approvals and regulatory reviews under a law introduced by the Liberal government last year. The aim is to provide a final decision on a proposed project within a year.
Past pipeline proposals have been cancelled amid strong opposition and Canada’s lengthy, complex review process. A government official said investors were watching how the process unfolded, adding that a successful review could draw further private-sector interest. The project is estimated to cost between C$35.2 billion and C$43.7 billion.
The governments of Canada and Alberta are backing the project. “Pembina Pipeline Corporation” has a non-binding agreement for a 10% stake during construction, with an option to acquire a further 10% once the pipeline is operating. Indigenous groups will also be offered the opportunity to purchase at least a 10% ownership stake.
Opposition and environmental concerns
The pipeline is also intended to address concerns in Alberta, a landlocked oil-producing province that says its resource development has been constrained. Albertans are due to vote on independence in a referendum later this month.
Speaking from Fort McMurray, Alberta, Carney called Pacific Link “a demonstration of the power of Canada”.
The project is likely to face opposition from environmental groups over potential effects on coastal marine ecosystems, as well as from some Indigenous communities along the route. Carney said discussions with many Indigenous communities had already taken place and that “intensive” consultations were still to come.
Construction is planned to begin by 2032, subject to final approval. Under the agreement, Alberta has also committed to developing what it describes as the world’s largest carbon capture programme to reduce its overall emissions. Ottawa has worked to increase ocean-protection funding and strengthen rules to protect marine life, including endangered Southern Resident killer whales, from increased tanker traffic.
