Canada is fast-tracking the regulatory approval of the proposed Pacific Link crude oil pipeline as Prime Minister Mark Carney’s government moves to reduce the country’s heavy dependence on the United States and expand energy exports to international markets, particularly Asia.
Carney announced on Thursday that the Pacific Link pipeline had been designated a project of national interest, allowing it to go through a streamlined federal review process.
The federal government aims to finalise the conditions for the project by September 1, 2027, potentially clearing the way for construction to begin, subject to consultations, approvals and other requirements.
Speaking during a visit to Fort McMurray, Alberta, the centre of Canada’s oil sands industry, Carney said the pipeline was central to his government’s plan to transform the economy, increase non-US exports and strengthen Canada’s position in global energy markets.
“A pipeline to the west coast is part of our mission to transform our economy, to double our non-U.S. exports over the next decade and unlock our full potential as a global energy superpower,” Carney said.
The proposed Pacific Link pipeline is expected to transport an additional one million barrels of crude oil per day to Canada’s West Coast, providing access to growing markets in Asia and reducing reliance on the US market.
Canada currently sends about 90 per cent of Alberta’s oil exports to the United States, according to the federal government, making market diversification a central objective of the project.
Ottawa estimates that Pacific Link could create about 140,000 jobs, add more than C$20 billion annually to GDP and generate more than C$100 billion in government revenue by 2060.
The project will be developed by Trans Mountain Corporation with investment and expertise from Pembina Pipeline Corporation. Canada and Alberta are expected to share equal ownership, while Indigenous communities will be offered a minimum 10 per cent ownership stake through Indigenous loan-guarantee programmes.
The proposed pipeline will use a southern route to reach the British Columbia coast, with the federal government saying the route is designed to avoid highly sensitive ecosystems, including the Great Bear Sea.
The announcement comes as Canada seeks to diversify its trade and energy markets amid continuing trade tensions with the United States.
Carney’s government has also pledged extensive consultations with Indigenous communities and other stakeholders, with the federal government saying more than 130 Indigenous communities near or along potential routes in Alberta and British Columbia were consulted during the assessment process.
The Pacific Link project is therefore being positioned not only as a major oil infrastructure project, but as part of Canada’s broader strategy to expand non-US exports, attract investment and establish new routes into global energy markets.