Carney, Smith say new West Coast pipeline could get oil companies building again

Prime Minister Mark Carney conveyed confidence on Thursday that oilsands producers would be eager to invest in expansion projects to fill the Pacific Link pipeline. He emphasized the pipeline's potential as a "tremendous opportunity" for producers, citing the additional access to Asian markets that would pay premium prices for Canadian crude.

The narrowing price gap between heavy Alberta crude and lighter global crude would save the industry $6 billion annually, Carney added. He highlighted government measures such as streamlining the regulatory review process and expanding business tax incentives to boost investor confidence. The Pathways carbon storage project in Alberta, a condition for the pipeline, is also planned by the five biggest oilsands producers.

The pipeline, costing $35.2 billion to $43.7 billion, would run from Bruderheim, Alta., to a marine export terminal in Delta, B.C. With a 90% government share, it would boost Canada's energy security. However, environmental advocates decry the government's financial stake in the fossil fuel project at a time when many countries are focusing on renewables and climate change mitigation.