On Thursday, July 2, 2026, the Government of Canada announced that Prime Minister Mark Carney will refer Alberta’s proposal for a new West Coast oil pipeline to the federal Major Projects Office, formally advancing a line built to carry Canadian crude past the United States to buyers in Asia. Standing beside Alberta Premier Danielle Smith in Calgary, Carney called it an approach that gives businesses the certainty they need to build.

The project, labeled the West Coast oil pipeline, would move more than 1 million barrels of oil a day from Bruderheim, Alberta, northeast of Edmonton, to the Roberts Bank marine terminal in Delta, British Columbia, just south of Vancouver. From there, tankers would ship the crude to Asian markets. The route closely follows the existing Trans Mountain corridor, allowing the partners to avoid opening British Columbia’s northern coast, where an oil tanker ban remains in force.

Alberta’s submission package puts the cost between C$35.2 billion and C$43.7 billion, including contingency. The province says it has already spent C$18.3 million on planning.

Who builds it and who pays. The ownership group brings together the federally owned Trans Mountain Corporation, the Alberta Petroleum Marketing Commission, and Calgary-based Pembina Pipeline Corporation (TSX: PPL). Canada and Alberta would be the majority owners, splitting the bulk of the project between Trans Mountain and the Alberta commission. Pembina would hold a 10% economic interest through construction, with an option to increase its stake by another 10% once the pipeline enters service.

Pembina made clear it is not putting money at risk yet. The company said it will retain full discretion over any final investment decision and will not commit its own capital before that decision is made. Scott Burrows, President and Chief Executive Officer of Pembina, called the project a once-in-a-generation opportunity to build nation-scale energy infrastructure. The company has targeted September to finalize definitive agreements.

Why it matters for the economy. Carney has set a goal of doubling Canada’s non-U.S. exports over the next decade. More than 90% of Canadian energy exports currently go to the United States, forcing Canadian heavy crude to sell at a discount because it has limited access to other markets. A second Pacific export route, in addition to the Trans Mountain Expansion that entered service in 2024, would give producers greater bargaining power and could narrow that price discount, increasing revenue for both energy companies and governments.

The government estimates construction could support approximately 140,000 jobs at peak activity, including about 45,000 in Alberta and 70,000 in British Columbia. Once operational, the project is expected to support roughly 50,000 direct and indirect jobs annually.

Getting British Columbia on board. Earlier Thursday, Carney appeared in Vancouver with British Columbia Premier David Eby to announce a separate agreement the Prime Minister said could unlock more than C$200 billion in new investment, with British Columbia serving as the “linchpin.” Ottawa pledged to maintain the northern oil tanker ban, compensate British Columbia for environmental risks if the project proceeds, and assume financial responsibility for potential spill liabilities. Eby said the agreement does not obligate him to support the pipeline but confirmed the province would not challenge a federally approved project in court.

The pipeline proposal is paired with a second agreement. On the same day, Canada, Alberta, and the Oil Sands Alliance—Canadian Natural Resources Limited, Suncor Energy, Cenovus Energy, Imperial Oil, and ConocoPhillips—signed a memorandum of understanding supporting the Pathways carbon capture and storage project, which aims to reduce oil sands emissions by 16 million tonnes annually. Companies meeting those targets would see carbon compliance costs increase more gradually. Final agreements are expected later this fall.

Not everyone is convinced the economics justify the investment. No private company has offered to finance and build the project independently, leaving the federal and Alberta governments responsible for most of the cost. Janetta McKenzie of the Pembina Institute—an environmental policy organization unrelated to Pembina Pipeline—said the lack of private investment raises legitimate questions, arguing that expanding existing infrastructure would likely cost less than building a new line. Federal Conservative Leader Pierre Poilievre criticized Carney for maintaining the northern tanker ban and argued the private sector should build the project without government ownership.

For now, the referral to the Major Projects Office formally starts the federal review process. Ottawa plans to decide by October 1, 2026, whether to designate the pipeline a national-interest project under the Building Canada Act, while Indigenous consultations begin immediately. Smith, who has said Alberta should double oil production to 8 million barrels per day over the next 10 to 15 years, called the proposal transformational infrastructure that would generate lasting wealth for Canada.

JBizNews Desk | Calgary, Alberta
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