Canada to fast track oil pipeline meant to diversify economy away from US

Prime Minister Mark Carney announced on Thursday that Canada will fast-track the approval process for a proposed crude oil export pipeline to the west coast. The pipeline, announced in July, could generate over C$20 billion (US$14 billion) annually in GDP, according to Carney. The project is a key component of Carney's strategy to diversify Canada's economy away from the United States and mitigate the impact of US President Donald Trump's tariffs.

Ottawa plans to classify the Pacific Link pipeline as a project of national interest, allowing it to proceed through a single federal regulatory review process. Carney stated that the goal is to complete the process by September 1, 2027.

The 1 million barrel per day pipeline is projected to create 140,000 jobs and generate over C$20 billion in GDP per year, along with C$100 billion in government revenue by 2060. Currently, Canada has only one east-west oil export pipeline, the 890,000-barrel-per-day Trans Mountain pipeline, which is already operating at full capacity.

Canada has consistently exported more than 90% of its crude oil to the United States via pipeline. A new export pipeline could transform Canada into a major global energy supplier as Asian importers seek alternatives to Middle Eastern oil, especially in light of the Iran conflict.

Filling the pipeline would necessitate new oil sands expansions, which have not been undertaken by any company in over a decade. The pipeline will be constructed by government-owned Trans Mountain Corp in collaboration with Pembina Pipeline Corp. Alberta estimates the project's cost to range between C$35.2 billion and C$43.7 billion, with the federal government and Alberta government being the primary shareholders.

Indigenous communities are to receive a minimum of 10% ownership interest. Chief Raymond Powder of the Fort McKay First Nation expressed interest in potentially acquiring an equity stake in the pipeline.