Alberta has officially put forward a plan for an oil pipeline to the southwest coast of British Columbia for tanker shipment to Asian markets. The project is a collaboration between federally-owned Trans Mountain Corp. and Calgary-based Pembina Pipeline Corp., acting as the private entity.
Premier Danielle Smith disclosed the province’s proposal to the federal Major Projects Office in Calgary during a joint press conference with Prime Minister Mark Carney on Thursday evening. The estimated cost of the project, as per Alberta’s submission, ranges from $35.2 billion to $43.7 billion, contingencies included. The anticipated completion timeline for the approximately 1,200- to 1,250-kilometre pipeline project is set between 2032 and 2034.
Though a northern route had been considered previously for the new bitumen pipeline, the primary routing options outlined now will run from Bruderheim, Alta., northeast of Edmonton, to Roberts Bank Terminal in Delta, B.C. These routes are akin to the existing Trans Mountain pipeline corridor, with one labeled as the “original corridor” and the other as the “optimized corridor.”
The submission details that for the “original corridor,” around 92% of the route would align with existing infrastructure or previously disturbed land, while for the optimized route, this figure drops to 82%.
Prime Minister Carney emphasized that the preferred route for the new pipeline would align with the existing Trans Mountain Corridor, offering a direct link to the Pacific Coast, a key gateway to rapidly growing global markets. Premier Smith highlighted the advantages of the southern route, citing its alignment with an existing pipeline route, established Indigenous community relationships, and quicker oil access to the market.
The proposed West Coast oil pipeline aims to transport over one million barrels of oil daily to Canada’s West Coast, enhancing access to expanding Asian markets and supporting Alberta’s objective to double oil production to eight million barrels per day over the next decade to fifteen years.
The announcement coincided with Ottawa signing a multibillion-dollar memorandum of understanding with British Columbia, committing to uphold the North Coast oil tanker ban, which has been in place for years to safeguard environmentally sensitive coastlines.
Alberta’s submission emphasizes selecting a path near the Trans Mountain pipeline to minimize new land disturbance and environmental impacts on wildlife and communities. The province anticipates the pipeline’s route will intersect with the traditional territories of approximately 90 to 125 Indigenous communities and cross around nine to eleven First Nations reserves in B.C.
The project is planned for an accelerated timeline, with initial activities scheduled to commence as early as October 2027. Early project phases entail finalizing routes, engaging with Indigenous groups, obtaining permits, and preparing construction sites.
The proposal foresees the creation of thousands of jobs for residents of Alberta and British Columbia, with a peak construction workforce estimated at around 140,000 in the early 2030s and about 50,000 during ongoing operations. Discussions are ongoing with the Oil Sands Alliance, comprising five major companies, although no commitments from oil producers to utilize the pipeline have been confirmed yet.
Regarding financial aspects, detailed funding and taxpayer costs remain subject to negotiation. Pembina Pipeline is set to hold a 10% economic interest in the project at the start of construction, with an option to increase its stake by an additional 10% post-operation. The company clarified that it retains full discretion over final investment decisions for its interest and will not risk its capital until those choices are finalized.
