MNI BRIEF: Canada Govt To Build New West Coast Pipeline

Canadian Prime Minister Mark Carney said Thursday the government's Trans Mountain Corporation will move to construct a new oil pipeline from Alberta through British Columbia to the west coast, marking a shift from the government's position a few months ago that the project would move ahead only if a private-sector developer took the lead.

Carney also said Pembina Pipeline Corp. will work closely with Trans Mountain and bring "private-sector expertise and discipline to the construction and operation of the pipeline." The line now meets the requirement for a carbon capture project and will continue to seek financial benefits for indigenous tribes, Carney said. (See: MNI: Canada Years Away From New Pipeline Investor – Officials)

Carney and Alberta Premier Danielle Smith in May signed an agreement for construction to begin as soon as Sept. 1 2027. Pressure for a deal rose when Smith set a referendum for October on moving to separate from Canada in part because she said the federal government landlocked Alberta oil and gas, and as Donald Trump mused about making Canada the 51st State. 

Carney nodded to that pressure saying "Canada is worth fighting for because we are stronger together."

The 1 million barrel a day pipeline must still advance through a federal major projects office. It will follow an existing route through southern British Columbia, Carney said, rather than earlier discussion of scrapping a ban on oil tankers at more northern ports. 

Smith said the lack of private investment so far stems from past projects that failed after regulatory delays. “It does take some work I think to make sure that the private sector proponents understand that this is a real process,” she said.