TORONTO (AP) – Canadian Prime Minister Mark Carney An oil pipeline project capable of carrying a million barrels a day to the Pacific coast was fast-tracked on Thursday, which could reduce the country’s dependence on the United States and improve relations with oil-rich Alberta as separatists push for a referendum on leaving Canada.
Appearing with Alberta Premier Danielle Smith in Fort McMurray, in the heart of Canada’s tar sands, Carney singled out the Pacific Link pipeline as a project of national interest under legislation passed by his government to accelerate major infrastructure projects.
An attempt to keep Alberta in Canada
Alberta is hosting a public vote on October 19 on whether to hold a referendum when leaving Canada. Smith has long complained that Carney’s predecessor, Justin Trudeau, hobbled Alberta’s energy sector and fueled separatist sentiment.
Smith said she would vote to keep Alberta in Canada and described the roughly 22 per cent support for separation recorded in a recent poll as “still too high for my liking.”
“I don’t like the fact that many of our citizens have abandoned Canada,” she said, calling the pipeline an example of how “cooperative federalism can work in action.”
Asked what message Albertans considering separation should send, Carney said it demonstrates that “Canada is working” and shows what Canada can achieve together.
Ian Brodie, a political science professor at the University of Calgary and former chief of staff to Conservative Prime Minister Stephen Harper, said the announcement could further help separatists by highlighting Alberta’s dependence on Ottawa.
“There’s no reason why this pipeline couldn’t have been accelerated in July, so we lost three months on the project,” Brodie said. “It reminds us that Alberta needs a sympathetic premier to grow its oil sector. We don’t control our fate.”
A pipeline to loosen the American grip
Carney said Canada had a “once-in-a-generation opportunity to become an energy superpower” and end its reliance on a single trading partner.
“Today, 90 per cent of Alberta’s oil goes to the United States,” he said. “Pacific Link will significantly reduce this dependency” by opening access to growing Asian markets.
The government has called Canada’s dependence on U.S.-bound oil infrastructure a “structural vulnerability.” He said Pacific Link and improvements to the Trans Mountain network could reduce the share of fixed pipeline capacity directed to the United States from about 83% to between 65% and 70%.
The move comes as President Donald Trump’s trade war and threats to Canadian sovereignty push Carney to reduce Canada’s long-standing economic dependence on the United States.
The proposed 1,250-kilometer (775-mile) pipeline would extend from Bruderheim, Alberta, to a deep-water port near Delta, British Columbia, largely following the existing Trans Mountain corridor.
Questions about money and the opposition
The project is expected to cost between $25 billion and $31 billion, but major questions remain about how it will be financed and whether producers will commit to using it.
Its designation does not constitute final approval. Proponents must nevertheless address technical aspects, costs and environmental conditions before deciding to move forward.
The federal and Alberta governments contribute about $2.8 billion before the main private investor, Pembina Pipeline Corp., commits its share of construction costs. Pembina has a 10% economic stake and would decide whether to invest at the time the final investment decision is made, a federal official said.
When asked how much federal taxpayers might ultimately contribute, Carney replied: “The Canadian taxpayer is going to make a lot of money from this pipeline.” » He declined to provide a figure.
An opening season next spring will make it possible to assess the capacity that producers are willing to contract. Officials said there was considerable interest, but acknowledged the project might not attract enough shippers or funding to move forward.
A senior government official said investors were waiting to see if Canada could approve major projects more quickly, noting that it took 14 years for the Trans Mountain expansion project to go from launch to first oil.
The pipeline also faces opposition from indigenous communities and environmental groups. The government said most indigenous communities consulted were not prepared to support listing the project, citing concerns about its route, environmental effects, shipping and treaty rights.
Carney said “the real process of intensive consultation will begin now”.
Canada, Alberta and the project owners have committed to providing Indigenous communities with at least a 10% stake.
The government also acknowledged that the pipeline is expected to facilitate increased oil production and generate additional emissions.
Carney said final regulatory conditions are expected by September 2027, and the pipeline is expected to begin operating in 2032 or 2033.
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