Canadian Prime Minister Mark Carney signed an investment agreement with the province of British Columbia for a massive pipeline project that will move the country's oil exports beyond the US.
The pipeline, with a capacity of 1 million barrels per day, will start in the oil-rich province of Alberta, traverse the entirety of British Columbia, and reach the country's west coast. Through this, Canada aims to reduce its economic dependence on the US by gaining direct access to Asian markets.
At a press conference with conservative-leaning Alberta Premier Danielle Smith, Carney said, 'It's time to act. The best route for a new pipeline runs south from the existing Trans Mountain corridor to our Pacific coast. This is the gateway to the world's fastest-growing markets.'
Carney stated that Canada has set a goal of doubling its non-US exports over the next decade, and that the pipeline could reduce the price discount on current oil sales.
Smith, for her part, announced that the Alberta government is partnering with the federal Trans Mountain Corporation and Calgary-based Pembina Pipeline on the project, called the West Coast oil pipeline. 'The world wants Canada to provide a stable, democratic, and reliable energy supply,' Smith said, adding that Alberta plans to increase its oil production to 8 million barrels per day within 10 to 15 years.
British Columbia and some First Nations communities oppose a pipeline that would pass through the north of the province. In a statement in Vancouver, Carney said, 'The tanker ban will remain in place. We will protect British Columbia's north coast.' He also added that if the pipeline is built in the south of the province, British Columbia will be compensated for environmental risks.
British Columbia Premier David Eby also stated that they had received a commitment to maintain the north tanker ban, saying, 'This ensures the north tanker ban remains in place.'
Carney's predecessor, Justin Trudeau, had opposed a pipeline that would pass through northern British Columbia and the Great Bear Rainforest. Trudeau approved the Trans Mountain pipeline from Alberta to British Columbia's south coast, but rejected the Northern Gateway project due to opposition from environmentalists and Indigenous communities.
Since the Trans Mountain expansion opened in 2024, roughly two-thirds to three-quarters of the crude oil shipped from Canada's Pacific coast has gone to Asia, helping the country reduce its dependence on the US market.
Expanding into global markets is part of the strategy to cope with the trade war waged by US President Donald Trump. In his second term, Trump used presidential authority to impose varying tariffs on energy products and goods from Canada and other countries.
