Calgary 
A new agreement between the federal government and Alberta is setting the stage for a west coast oil pipeline that could begin construction as early as Sept. 1, 2027.
The plan follows the Alberta–Canada Energy Agreement signed in November 2025 and outlines a clearer path for expanding oil exports to Asian markets. Both governments say the goal is to reduce regulatory uncertainty while opening the door to long-term investment in the energy sector.
Prime Minister Mark Carney described the agreement as a step toward a more “prosperous, sustainable and resilient economy,” while Alberta Premier Danielle Smith said it signals Canada is ready to move forward with major infrastructure and attract global investors.
A key milestone is set for Oct. 1, 2026, when the proposed pipeline could be designated a project of national interest. If approvals move ahead, design and construction would follow shortly after. The project is expected to carry more than one million barrels of oil per day to a west coast port for export.
The proposal also includes Indigenous ownership opportunities. Leaders such as Jim Boucher and Dave Lamouche pointed to potential long-term economic benefits, including jobs, training, and broader participation in the energy sector.
Alongside the pipeline, the agreement reshapes industrial carbon pricing. Instead of rising to $170 per tonne by 2030 under earlier plans, the price would reach $130 per tonne by 2035, with gradual increases afterward. Officials say this approach provides more predictability for industry while still supporting emissions reductions.
Other measures include pausing a federal oil and gas emissions cap, streamlining project reviews, and allowing Alberta to continue regulating methane emissions with a target of a 75 per cent reduction from 2014 levels by 2035.
The agreement is also closely tied to the Pathways Project, a large-scale carbon capture, utilization and storage initiative led by oil sands companies. Both governments reaffirmed their commitment to advancing what is described as the world’s largest CCUS project, aimed at significantly reducing emissions while supporting continued energy production.
Together, these steps are framed as part of a broader effort to grow Canada’s energy exports while adapting to shifting global markets and investing in emissions-reduction infrastructure.
