Canada to Fast-Track New Oil Pipeline to Reduce Dependence on US

Ottawa, Canada — October 2, 2026: Canada is set to accelerate the approval process for a proposed crude oil pipeline to the country’s west coast as Prime Minister Mark Carney seeks to diversify the economy and reduce its dependence on the United States.

Carney announced on Thursday that the Pacific Link pipeline would be designated a project of national interest, allowing it to undergo a single federal regulatory review. The government aims to complete the approval process by September 1, 2027.

The proposed pipeline, which would transport up to 1 million barrels of crude oil per day, is expected by Ottawa to create about 140,000 jobs and contribute more than C$20 billion ($14 billion) to Canada’s annual GDP. The government also estimates that it could generate C$100 billion ($70 billion) in government revenue by 2060.

Speaking in Fort McMurray, Alberta, Carney said the project was part of his government’s plan to transform Canada’s economy, increase non-US exports and strengthen the country’s position as a global energy supplier.

Canada currently sends more than 90 percent of its crude oil exports to the United States, mainly through pipelines. The new project would provide access to Pacific markets, including major Asian oil importers.

The pipeline is expected to be built by government-owned Trans Mountain Corp in partnership with Pembina Pipeline Corp. Alberta estimates construction costs could range from C$35.2 billion to C$43.7 billion ($24.7 billion–$30.7 billion).

The federal and Alberta governments are expected to be the majority owners, while Indigenous communities will be offered at least a 10 percent ownership stake.

However, the project faces potential challenges. Environmental groups and Indigenous communities have previously opposed major Canadian oil pipeline projects, contributing to the cancellation, delays and cost increases of some developments.

Alberta Separatism

Carney announced the project alongside Alberta Premier Danielle Smith in Fort McMurray, amid renewed calls by some Albertans for the province to consider separating from Canada.

Alberta is scheduled to hold a public vote on October 19 on whether to hold a referendum on separation. Smith has previously criticized federal policies that she said harmed Alberta’s energy industry.

Smith said she would vote to keep Alberta within Canada, while describing support for separation as a concern.

Carney said the pipeline demonstrated what Canada could accomplish through cooperation between the federal government and provinces.