Alberta is seeking a private sector proponent for a potential new crude oil pipeline, aiming to connect the oil-rich province to the Port of Prince Rupert in British Columbia, reported Reuters.

Premier Danielle Smith announced the initiative at an energy conference in Calgary, highlighting the province's strategy to engage with Canada's major pipeline companies.

The proposed pipeline, which has the capacity to carry one million barrels per day (1mbbl/d), is part of Alberta's plan to diversify its oil export markets, which are currently heavily reliant on the US.

This comes in the wake of trade tensions and tariff threats from the US, underlining the need for Canada to broaden its trade horizons.

Premier Danielle Smith said in a statement: “The federal government should act now to remove production caps and join us in supporting an oil pipeline to the west coast, increasing access to tidewater and ensuring we can continue to provide Alberta-made energy for our valued partners around the world.”

Smith expressed the province's openness to a consortium approach for the pipeline's construction or to support a single company that steps forward as the main proponent.

The province recognises the strategic importance of a new export pipeline in supporting the long-term growth of Canada's oil industry, which achieved record production last year with the opening of the Trans Mountain pipeline expansion in May, the report stated.

The premier also touched upon the potential benefits of aligning the development of the pipeline with the Pathways Alliance carbon capture and storage project, which aims to reduce emissions from Canada's energy sector.

However, the Pathways project, estimated to cost between $10bn (C$13.65bn) and $20bn, has yet to secure funding support from the government.

Earlier this month, wildfires in Alberta resulted in the suspension of roughly 350,000 barrels per day of heavy crude production, approximately 7% of Canada's overall oil output.