Alberta Premier Danielle Smith is set to announce details of a new West Coast oil pipeline project on Wednesday, according to sources familiar with the plan. The announcement, scheduled for 10 a.m. MT in Edmonton, comes as the province seeks to expand market access for its growing oil production amid federal climate policies and Indigenous consultation requirements.
Pipeline Route and Capacity
The proposed pipeline would transport up to 590,000 barrels per day of crude oil from Alberta's oil sands to a marine terminal on British Columbia's coast, likely near Kitimat or Prince Rupert. This would be Alberta's third major pipeline project, following the Trans Mountain Expansion (TMX) and the now-cancelled Keystone XL. The project is expected to cost between $12 billion and $16 billion, with construction potentially creating 8,500 jobs over four years.
Premier Smith has emphasized the need for diversified export routes to reduce Canada's reliance on the U.S. market, which currently takes 97% of Alberta's oil exports. “We must ensure our resources reach global markets, especially as global demand for energy remains strong,” Smith said in a recent speech to the Edmonton Chamber of Commerce.
Environmental and Regulatory Challenges
Environmental groups have already signaled opposition. Janetta McKenzie, director of oil and gas at the Pembina Institute, told BNN Bloomberg that the project would increase greenhouse gas emissions and threaten marine ecosystems. “We need to be investing in clean energy, not doubling down on fossil fuel infrastructure that will lock in emissions for decades,” McKenzie said.
The project will require approval from the Canada Energy Regulator and the B.C. government, as well as consultations with more than 30 Indigenous communities along the proposed route. The federal government under Prime Minister Mark Carney has pledged to achieve net-zero emissions by 2050 and has implemented a cap on oil and gas emissions, which could complicate approval.
Economic Impact and Industry Support
Industry groups have welcomed the announcement. The Canadian Association of Petroleum Producers (CAPP) estimates that the pipeline could generate $4.5 billion in annual revenue and reduce the price differential between Western Canadian Select and West Texas Intermediate crude. “This pipeline is critical for Canadian energy security and economic growth,” said CAPP president Lisa Baiton.
Alberta's oil production has risen to 3.8 million barrels per day, up from 3.5 million in 2023, driven by increased efficiency and the completion of the TMX pipeline in 2024. However, pipeline capacity constraints have led to bottlenecks and price discounts, costing the industry an estimated $10 billion annually.
Political Reactions
Federal Natural Resources Minister Jonathan Wilkinson said the government will review the proposal on its merits but reiterated the importance of meeting climate targets. “Any new pipeline must align with our emissions reduction goals and respect Indigenous rights,” Wilkinson said in a statement.
B.C. Premier David Eby expressed caution, noting that his government would prioritize environmental protections and Indigenous consent. “We will not rubber-stamp projects that put our coast at risk,” Eby told reporters in Victoria.
The announcement is expected to include details on the project's ownership structure, timeline, and potential partners. Alberta's government has indicated it may take an equity stake in the pipeline, similar to its role in the TMX project.
