The Government of Canada has referred Alberta’s proposed west coast oil pipeline project to the Major Projects Office (MPO) for evaluation as a potential national interest initiative.
Set to transport approximately one million barrels per day (mbbl/d) of crude oil, the pipeline would use the existing Trans Mountain corridor and comply with the Oil Tanker Moratorium Act.
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The project is structured as a partnership between the federal government and the Government of Alberta, with each holding an equal stake. The framework also reserves a significant equity interest for indigenous partners, and immediate consultations with indigenous representatives are set to begin.
As part of the project, Pembina Pipeline has entered into a non-binding heads of agreement with both governments and Trans Mountain, and will contribute technical and operational expertise.
The initial economic interest of Pembina in the project will be 10% through construction, with an option for up to 20% at commercial operation. Trans Mountain is set to lead the construction, regulatory work, stakeholder engagement and ongoing operations.
Pembina’s final participation remains subject to project milestones and its internal investment criteria, with no at-risk development capital before a final investment decision.
Pembina president and CEO Scott Burrows said: “The project represents a once-in-a-generation opportunity to advance nation-building energy infrastructure that strengthens Canada’s economy and expands access to global markets for Canadian energy.”
The MPO, created in August 2025, has begun the process of potentially listing the pipeline under the Building Canada Act. If the project attains national interest status, it will enter a streamlined regulatory process that maintains environmental standards and fully respects indigenous rights.
Consultation with provinces, territories and indigenous communities, along with formal engagement with the Government of British Columbia, will be part of the review.
In addition to the pipeline, the Federal and Alberta Governments, in partnership with the Oil Sands Alliance, have made a commitment to the Pathways Project.
The Pathways Project aims to achieve 16 million tonnes of emissions reductions each year, potentially making it one of the world’s largest carbon capture and storage ventures.
The combined construction and operation of both the pipeline and Pathways Project are projected to create approximately 175,000 jobs nationally, with up to 140,000 associated with the pipeline and a further 40,000 supported annually through Pathways.
The Pathways Project is expected to contribute more than C$16bn ($11.3bn) to Canada’s gross domestic product.
Alberta Premier Danielle Smith said: “Canada has everything it needs to become an energy superpower but only if we build the infrastructure to get our resources to market. Alberta has done its part by putting forward a responsible, world-class proposal and selecting the strongest route to Canada’s west coast.
“A west coast oil pipeline will create tens of thousands of jobs, generate tens of billions in new provincial and federal revenues, and make Canada more secure and self-reliant. This project will define Alberta’s and Canada’s economic future.”
These developments follow a memorandum of understanding between the Federal Government and Alberta in November 2025 and build on the Implementation Agreement formalised in May 2026.
As part of the pipeline project, indigenous communities are expected to benefit from equity ownership, business opportunities, jobs and training. The government states that these partnerships provide opportunities for long-term economic development within indigenous communities.
