Canada fast-tracks 1 million-barrel-a-day Pacific Link oil pipeline to cut US dependence, target Asia

Canada has placed Pacific Link, a proposed pipeline capable of transporting one million barrels of crude oil a day from Alberta to the Pacific coast, on an accelerated federal review track. Prime Minister Mark Carney announced on October 1 that the project, previously called the West Coast Oil Pipeline, had been listed as a project of national interest under the Building Canada Act. His office said the pipeline forms part of the government's effort to diversify exports and reduce dependence on the United States. The designation enables a single federal regulatory review; project conditions remain to be settled. The Major Projects Office, supported by the Canada Energy Regulator, will lead that process, with a target of finalising conditions by September 1, 2027. The review will cover Indigenous rights, environmental protections, ownership and other requirements. It will include Indigenous consultation and public hearings led by the regulator, according to the prime minister's office. Route and development timeline The proposal calls for a pipeline from Bruderheim in Alberta to a deep-water port near Delta in southern British Columbia. It could extend approximately 1,250 km and include a marine loading facility capable of handling Very Large Crude Carriers, according to the Major Projects Office. The precise route remains undetermined. The proposed corridor largely follows existing infrastructure, including the Trans Mountain system, and would not require changes to the Oil Tanker Moratorium Act, the office said. The project was referred to the Major Projects Office on July 2. Consultations began that month, followed by an August 1 notice that the government was considering a national-interest listing. Alberta's major-projects database lists an estimated cost of C$43.7 billion and completion by 2032. It classifies Pacific Link as a proposed project. Ownership and investment decisions Trans Mountain Corporation, Alberta Petroleum Marketing Commission and Pembina Pipeline Corporation will form the ownership group. Trans Mountain will design, develop, permit, construct and operate the pipeline, according to the Major Projects Office. Pembina's economic interest through construction will be 10%, with an opportunity to acquire up to another 10% after commercial operations begin. Trans Mountain and Alberta Petroleum Marketing Commission will hold equal shares of the remaining interest. Pembina said it retains discretion over its final investment decision and will have no development capital at risk before that decision. The company said environmental, regulatory and engineering work, alongside Indigenous and community engagement planning, was continuing. Indigenous communities will be offered at least a 10% ownership interest, supported by federal and Alberta loan-guarantee programmes. Ottawa said it had consulted more than 130 Indigenous communities near or along potential routes before the listing. Existing Pacific export capacity Canada already has a west-coast crude export route through Trans Mountain. Its expanded system began commercial operations in May 2024, increasing capacity to 890,000 barrels a day, according to the company. Trans Mountain is separately evaluating improvements to its existing system that would increase capacity to approximately 1.19 million barrels a day between 2027 and 2030. These proposals concern the existing pipeline system. India-Canada energy discussions The Pacific Link announcement follows bilateral discussions on expanding Canadian energy supplies to India. In January, Petroleum and Natural Gas Minister Hardeep Singh Puri and Canadian Energy and Natural Resources Minister Timothy Hodgson relaunched the ministerial energy dialogue in Goa. Their joint statement set out an intention to deepen trade in Canadian crude oil, LNG and LPG, and refined petroleum products from India. Carney and Prime Minister Narendra Modi's March 2 joint statement also identified scope for increased Indian imports of Canadian oil and LNG. Canada reaffirmed plans to expand heavy-oil export infrastructure serving Indo-Pacific markets. The leaders said a joint energy work plan would explore long-term contracts and address shipping costs and the availability of Canadian heavy oil supplies.