Mark Carney Fast-Tracks Pacific Link Pipeline to Diversify Exports

Prime Minister Mark Carney has designated the proposed Pacific Link oil pipeline as a project of national interest, the first such designation under the Building Canada Act. The 1,200-to-1,250-kilometer pipeline will transport one million barrels of oil per day from Bruderheim, Alberta, to a marine export terminal at Roberts Bank in Delta, British Columbia. Estimated to cost between $35.2 billion and $43.7 billion, the project is designed to diversify energy exports toward Asian markets and reduce Canada's structural dependence on the United States, where currently 90% of Alberta's oil is exported.

Ownership of the project is split equally between the Government of Canada and the Government of Alberta, with Pembina Pipeline Corporation holding a 10% stake. Indigenous communities have been offered a minimum 10% ownership stake through government loan guarantees. Trans Mountain Corporation will lead the development and operation of the pipeline. The designation allows the federal government to bypass certain regulatory laws and consolidate environmental assessments through the Major Projects Office and the Canada Energy Regulator. Construction is targeted to begin as early as September 1, 2027, with operations expected by 2032 or 2033.

Politically, the move aims to mend relations with Alberta ahead of an October 19 vote on whether to hold a referendum on leaving Canada. While the decision was praised by business groups and the B.C. Conservatives, it faced sharp criticism from the NDP and Indigenous groups. NDP leader Avi Lewis called the project "a pipeline to the courts," while the Coldwater Indian Band and the Assembly of First Nations cited inadequate consultation and climate risks.