Canada Fast-Tracks Pacific Link Pipeline to Reduce US Dependence

Canadian Prime Minister Mark Carney announced on Thursday that a proposed million‑barrel‑a‑day oil pipeline to the Pacific Coast, now called Pacific Link, will be fast‑tracked as a project of national interest. The move aims to reduce Canada’s reliance on the United States and to strengthen ties with Alberta amid a scheduled referendum on the province’s possible secession. Carney, joined by Alberta Premier Danielle Smith in Fort McMurray, said the pipeline would demonstrate how “cooperative federalism can work in action” and that it sends a clear message that “Canada is working” to address separatist concerns.

Pacific Link will run 1,250 kilometres (775 miles) from Bruderheim, northeast of Edmonton, to a deep‑water port near Delta, British Columbia, largely following the existing Trans Mountain corridor. The project is estimated to cost between $25 billion and $31 billion and will require the federal and Alberta governments to contribute roughly US$2.8 billion upfront, pending a private investor’s construction share. Pembina Pipeline Corp. holds a 10 % economic interest but has not yet committed the required capital. The pipeline remains subject to engineering, cost, environmental, and regulatory approvals before final approval can be granted.

Carney noted that 90 % of Alberta’s oil is currently exported to the United States and that Pacific Link would allow Canada to export an additional one million barrels a day to Asian markets, thereby reducing the country’s structural vulnerability. He outlined a goal of doubling Canada’s non‑U.S. exports over the next decade and said the pipeline could lower fixed pipeline reliance on the U.S. from 82‑83 % to 65‑70 %.

The project faces significant Indigenous and environmental hurdles. Most consulted Indigenous communities expressed uncertainty about the route, marine impacts, and treaty rights, prompting Carney to say that an intensive consultation process would begin immediately. The government also plans to link the pipeline to the Pathways carbon‑capture initiative, which could cut oil‑sands emissions by 16 million metric tons annually, while acknowledging higher overall production and emissions. Regulatory conditions are expected by September 2027, with construction slated to start around 2032 or 2033.