Prime Minister Mark Carney announced a joint federal-Alberta initiative to build a new west coast pipeline, which will transport one million barrels per day of oil. This project, along with the Pathways Project for carbon capture, is expected to generate approximately 175,000 new jobs across Alberta, British Columbia, and the rest of Canada. The pipeline's construction and operation are projected to increase Canada's real gross domestic product by over 0.6 percent annually by the 2040s, unlocking an estimated $200 billion in new investments across the country.
The project carries an estimated price tag of between $35.2 billion and $43.7 billion, including contingency fees. The Alberta government has already spent $18.3 million on planning. The initial partnership involves the Government of Canada (through Trans Mountain Corporation) and the Government of Alberta (through its Alberta Petroleum Marketing Corporation) as majority interest holders. Pembina Pipeline Corporation will be a private sector investor, contributing expertise and taking an initial 10 percent stake in the project, with an option to increase it to 20 percent once the pipeline is operational. Indigenous Peoples are also reserved a meaningful equity stake, and consultations have begun immediately.
The West Coast Pipeline, officially named, will largely follow the existing Trans Mountain corridor from Bruderheim, northeast of Edmonton, to Delta, B.C., near Vancouver, respecting the Oil Tanker Moratorium Act. In conjunction with the pipeline, the Pathways Project, one of the world's largest carbon capture and storage initiatives, aims to achieve 16 million tonnes of emissions reductions per year, ensuring Alberta's oil exports will have one of the lowest carbon intensities globally. The project has been referred to the Major Projects Office for potential listing as a national interest project, which would streamline the federal permitting process while upholding rigorous environmental standards and Indigenous rights.
