Canada announced on Thursday it will fast-track approval for the Pacific Link oil pipeline, a 1,250-kilometre project stretching from Bruderheim, Alberta, to a deep-water port near Delta, British Columbia. The pipeline aims to carry roughly one million barrels of crude oil per day to the Pacific coast for shipment to Asia-Pacific markets.
Prime Minister Mark Carney framed the project as essential to reducing Canada’s economic dependence on the United States. Last year, 90% of Canadian crude oil exports went south. Carney said the Pacific Link pipeline would cut that dependency to about 65 to 70%, opening access to key markets including South Korea, China, and Japan.
“A pipeline to the west coast is part of our mission to transform our economy, to double our non-US exports over the next decade,” Carney said during a visit to Fort McMurray, Alberta. The project is expected to add up to C$30 billion ($21 billion; £16 billion) annually to Canada’s GDP and create 140,000 jobs.
The pipeline’s route will facilitate oil shipments by tanker vessels capable of carrying up to two million barrels from the Pacific coast. The project includes constructing marine berths to accommodate these large vessels. This infrastructure will allow Canada to export crude beyond its traditional US market, which has grown more uncertain under President Donald Trump’s protectionist tariffs.
Pacific Link will be the first project in Canada to benefit from a new federal law introduced last year, which fast-tracks regulatory approvals. The law aims to deliver a final decision on major projects within one year. Past pipeline proposals have faced lengthy reviews and fierce opposition, leading to cancellations.
A government official said on Thursday, “People are watching very closely how Canada is handling this process.” The official added that a smooth approval could attract more private investment. The pipeline’s construction cost is projected between C$35.2 billion and C$43.7 billion.
The project has backing from the Canadian and Alberta governments, as well as the Pembina Pipeline Corporation, which holds a non-binding agreement for a 10% stake during construction, with an option for an additional 10% once operational. Indigenous groups will be offered a minimum 10% ownership stake.
Alberta’s provincial government has agreed to develop the world’s largest carbon capture programme alongside the pipeline effort in an attempt to lower emissions. Ottawa has also increased ocean protection funding and introduced rules aimed at protecting marine life, including the endangered Southern Resident killer whales, which could be affected by increased tanker traffic.
The pipeline also has political significance in Alberta, where a referendum on independence is scheduled for later this month. Carney described Pacific Link as “a demonstration of the power of Canada,” responding to questions about the province’s political tensions.
Environmental groups and some indigenous communities along the route have expressed opposition, citing concerns over coastal marine health. Carney said consultations with indigenous communities have already occurred and that “intensive” discussions are planned.
Construction could begin by 2032 if the project receives final approval. The pipeline would connect Alberta’s landlocked oil fields to global markets, diversifying Canada’s export portfolio and testing Ottawa’s ability to rapidly advance major energy projects amid geopolitical and domestic pressures.
According to Joy Online.
