The federal and Alberta governments have unveiled plans to designate the proposed pipeline transporting one million barrels of oil daily from Alberta to the B.C. coast as a project of national interest. The pipeline, now officially named the Pacific Link pipeline, has been added to Schedule 1 of the Building Canada Act. This move signifies a shift from debating the necessity of the project to expediting and streamlining the approval process, including environmental assessments.
Previously, project developers would have had to invest significant time and resources without certainty of federal support. This upfront declaration by the government aims to encourage construction and investment by providing clarity at the project’s outset.
According to a senior government official, the pipeline is anticipated to contribute up to $30 billion annually to Canada’s GDP, with $20 billion coming directly from the pipeline’s operations. By diversifying export destinations beyond the U.S., Canada aims to fetch higher prices for its oil, potentially generating an additional $10 billion in revenue annually.
Once operational, the project is expected to create around 140,000 jobs. The conditions for the project are set to be finalized by September 1, 2027, with construction slated to commence, targeting completion by 2032-33. Consultations involving the Major Projects Office and the Canada Energy Regulator will focus on environmental safeguards, oversight mechanisms, Indigenous involvement, and local employment opportunities.
The estimated project cost ranges from $35.2 billion to $43.7 billion, inclusive of a contingency fund. Ownership of the pipeline will be shared, with the Alberta government and the Trans Mountain Corporation each holding a 45% stake, and the Pembina Pipeline Corporation possessing a 10% interest during construction, with a potential additional 10% stake post-completion. Indigenous communities are also offered a minimum 10% ownership share in the project.
While the federal and Alberta governments currently hold a 90% stake in the pipeline, private sector involvement is anticipated. Investors are monitoring the project’s progress to assess the feasibility of fast-tracking construction by 2032-33. Alberta Premier Danielle Smith views government participation as a means to attract private investment for future ventures, fostering industry confidence in major project development.
Prime Minister Mark Carney emphasized the project’s inclusive approach involving Alberta, B.C., and Indigenous communities, highlighting Canada’s favorable investment climate and reduced effective tax rates as draws for private investors. The project’s advancement was praised by business groups for its potential economic benefits, while environmental organizations expressed concerns about increased greenhouse gas emissions.
The project aligns with Canada’s emission reduction strategies, including the Pathways Project for carbon capture and storage, aiming to lower emissions intensity per barrel of oil produced. However, environmental advocates stress the need for stronger climate policies amid increased oil production.
Political figures provided contrasting views on the project, with NDP Leader Avi Lewis criticizing the expedited approval process and Conservative Leader Pierre Poilievre advocating for swift action to facilitate construction. The public-private partnership in the pipeline’s development is seen as a crucial step towards bolstering industry confidence and fostering economic growth.
