Canada will expedite the approval process for a proposed crude oil export pipeline to its west coast, Prime Minister Mark Carney announced on October 1, 2026. The pipeline, known as the Pacific Link, is considered a project of national interest and will undergo a single federal regulatory review process. Carney stated that the goal is to complete this process by September 1, 2027.
The Pacific Link pipeline is expected to generate significant economic benefits, including the creation of 140,000 jobs and an estimated contribution of over 20 billion Canadian dollars (approximately $14 billion) to the gross domestic product (GDP) annually, along with 100 billion Canadian dollars (about $70 billion) in government revenue by 2060. Currently, Canada has only one east-west oil export pipeline, the Trans Mountain pipeline, which operates at full capacity.
Carney emphasized that the pipeline is part of a broader strategy to diversify Canada's economy away from reliance on the United States, particularly in light of U.S. tariffs. He noted that Canada has historically exported over 90 percent of its crude oil to the U.S. and that the new pipeline could position Canada as a significant global energy supplier, especially as Asian markets seek alternatives to Middle Eastern oil.
The project will be developed by government-owned Trans Mountain Corp in collaboration with Pembina Pipeline Corp, with estimated costs ranging from 35.2 billion Canadian dollars to 43.7 billion Canadian dollars (approximately $24.7 billion to $30.7 billion). The federal government and the government of Alberta will be the majority owners, and Indigenous communities will have the opportunity to acquire a minimum of 10 percent ownership.
Previous pipeline initiatives in Canada have encountered opposition from environmentalists and Indigenous groups, leading to project cancellations and delays. Carney made the announcement in Fort McMurray, Alberta, alongside Premier Danielle Smith, as part of efforts to strengthen relations with Alberta amid rising separatist sentiments. Alberta is set to hold a public vote on October 19 regarding a potential referendum on separation from Canada. Smith expressed her support for remaining in Canada and highlighted the importance of the pipeline as an example of effective federal cooperation.