The federal and Alberta governments have unveiled a major energy partnership to advance a proposed west coast oil pipeline and one of the world’s largest carbon capture projects, a move they say will strengthen Canada’s economy, create thousands of jobs, and expand access to global energy markets.
Prime Minister Mark Carney announced Thursday that the federal government will refer Alberta’s proposed west coast pipeline to the Major Projects Office for review under the Building Canada Act. The project would transport up to one million barrels of oil per day to export markets while largely following the existing Trans Mountain Corporation corridor and complying with the Oil Tanker Moratorium Act.
“In the face of a global energy crisis, Canada controls our own energy and our future. We are unlocking the full potential of our natural resources and ensuring our independence, sustainability, and prosperity for generations to come. Today, we are capitalising on this opportunity by unlocking $200 billion of new investment across the country. Canada will become the global supplier of choice for our allies and partners around the world.” The Rt. Hon. Mark Carney, Prime Minister of Canada
Under the proposal, the federal and Alberta governments will each hold equal ownership stakes in the pipeline, while a significant equity share will be reserved for Indigenous communities. Consultations with Indigenous groups are set to begin immediately.
Pembina Pipeline Corporation will invest in the project and provide technical expertise, while Trans Mountain Corporation will lead its development.
The Major Projects Office will assess whether the pipeline should be designated a project of national interest, allowing it to undergo a streamlined federal review while maintaining environmental standards and Indigenous consultation requirements.
The announcement also includes an agreement between the federal government, the Alberta government, and the Oil Sands Alliance to advance the Pathways Project, a large-scale carbon capture and storage initiative expected to reduce greenhouse gas emissions by approximately 16 million tonnes annually.
According to the governments, the pipeline and carbon capture projects together are expected to create about 175,000 jobs across Alberta, British Columbia, and the rest of Canada. Officials also said Indigenous communities would benefit through ownership opportunities, business contracts, employment, and workforce training.
The initiatives build on a memorandum of understanding signed by Canada and Alberta in November 2025 and an implementation agreement reached in May 2026. The governments said the agreements are intended to attract approximately $200 billion in new investment while supporting lower-carbon energy production and expanding Canada’s energy exports.
Prime Minister Carney said Canada is seeking to strengthen its energy security and position itself as a reliable supplier to global allies amid growing international energy challenges.
Alberta Premier Danielle Smith described the proposed pipeline as a nation-building project that would create jobs, increase government revenues, and improve Canada’s access to international markets.
“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.” The Hon. Danielle Smith, Premier of Alberta
Scott Burrows, president and CEO of Pembina Pipeline Corporation, called the initiative a “once-in-a-generation opportunity” to expand Canada’s energy infrastructure through collaboration between governments, Indigenous partners, and industry.
“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. We are proud to participate in this national priority that brings together the Government of Canada, the Province of Alberta, Indigenous partners, and industry.” Scott Burrows, President and Chief Executive Officer of Pembina
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