Canada's Carney announces new oil pipeline to Asia, maintains north coast tanker ban amid US trade rift
Prime Minister Mark Carney announced plans for a new oil pipeline from Alberta to British Columbia's Pacific coast, while pledging to maintain the ban on tankers off the northern coast. The multibillion-dollar strategy aims to diversify Canadian energy exports away from the US market amid escalating trade tensions.
Pipeline plan unveiled
Carney announced that Alberta had submitted plans to the Major Projects Office for a more than 1,000km pipeline to the Pacific coast, following the existing Trans Mountain corridor. The pipeline would carry up to 1 million barrels of crude per day to Asian markets. Construction is targeted to begin by September 2027, with Alberta Premier Danielle Smith aiming for completion by 2035 to double the province's oil production. The Trans Mountain Corp, a federal Crown corporation, would build the project with Pembina Pipeline Corp.
Canada has a 'once in a lifetime opportunity'. An opportunity that will determine our future.
- Carney announces pipeline plan, confirms northern tanker ban, and pledges BC compensation.
- Target to break ground on the >1,000km Alberta-to-BC pipeline.
- Alberta aims to complete pipeline and double oil production.
- Target to triple LNG production with five new terminals.
Environmental and political compromises
To secure British Columbia's support, Carney committed to maintaining the federal ban on oil tankers off the northern coast of BC. He also pledged to compensate the province for environmental risks if a pipeline is built in the southern part. BC Premier David Eby confirmed the northern tanker ban would remain and that British Columbians would be fairly compensated.
It ensures that the northern tanker ban remains in place, and it ensure that if a pipeline goes ahead, British Columbians are fairly compensated in the environmental risks.
Breaking dependence on the US
The pipeline is central to Carney's strategy to double Canada's non-US exports within a decade. Currently, Canada sells nearly all its oil to the United States, supplying about 60% of American oil imports. The push comes after President Donald Trump declined to renew the US-Mexico-Canada trade agreement and threatened 100% tariffs. Carney said the announcements would catalyse well over C$200 billion (US$141 billion) in new direct investments, while the New York Times reported the initiatives amount to C$150 billion.
In a more dangerous and divided world, our strategy is to focus on what we can control, by building our strength at home and diversifying our partnerships abroad.
Alberta separatism and economic stakes
Alberta holds the world's third-largest oil reserves, and the pipeline is seen as a way to ease separatist sentiment in the province. A public vote is scheduled for the fall on whether to hold a referendum on leaving Canada. Smith called the pipeline a project of national interest that would generate billions in revenue.
There is no doubt whatsoever that this pipeline is a project of national interest, one that will help connect Alberta's oil to global markets and strengthen our country's economic future for decades.
Beyond oil: LNG and port expansions
Carney also pledged to more than triple Canada's liquefied natural gas production by developing five terminals over the next decade. Ottawa will spend C$10 billion upgrading the Vancouver port, and the deep-sea port of Prince Rupert will be expanded to speed shipments to Asia.
