Ottawa designates West Coast pipeline a project of national interest

A proposed pipeline from Alberta to the West Coast has been designated a project of national interest, Prime Minister Mark Carney said Thursday, citing the conduit’s economic benefits and how it can boost Canada’s share of global energy markets.

This is the first time that the government has made an official designation of a project of national interest under the Building Canada Act. The legislation is a marquee part of Mr. Carney’s economic agenda and while the government has begun the process of listing other projects in the national interest, none of the others have yet passed the final hurdle.

Mr. Carney made the announcement on a frosty morning in Fort McMurray in northern Alberta – the heart of the oil sands – alongside Premier Danielle Smith and Indigenous leaders from various communities in the region, including Treaty 8 Grand Chief Trevor Mercredi.

With global oil demand at around 100 million barrels a day and supply becoming more volatile in the face of conflicts in the Middle East and Ukraine, Mr. Carney said: “The question is, who will emerge as the world’s trusted suppliers? It should be us. It must be Canada.”

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The next step for the pipeline – now called Pacific Link – is a federal review process, including consultations with stakeholders about the project’s ownership, as well as Indigenous rights and environmental protections.

Ottawa’s Major Projects Office will lead that process with support from the Canada Energy Regulator, federal officials said Thursday.The MPO aims to finalize conditions of the project by Sept. 1, 2027, so the pipeline can be under construction by 2032. Its expected price tag is between $35.2-billion and $43.7-billion.

As the arrangement stands, Canada and Alberta would share equal ownership of Pacific Link. Indigenous communities would be offered a minimum of 10-per-cent ownership interest through federal and provincial Indigenous loan-guarantee programs, officials said.

The pipeline is a key part of Mr. Carney’s suite of policy changes that aim to reset federal relations with Alberta and diversify Canadian exports away from the United States. It would carry one million barrels of oil a day to the coast, largely following the route of the Trans Mountain system, allowing Alberta oil to access more international markets and garner higher prices.

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Faster project approvals for major projects has been a major focus for the federal government under Mr. Carney. Last month, for example, it tabled Bill C-39, the Building Canada Strong Act. The legislation aims to introduce a system where major projects such as pipelines get just one review and receive a decision within one year.

Major infrastructure builds in Canada have been “weighed down by well-intentioned but arduous and often duplicative regulatory processes” in recent years, Mr. Carney said Thursday.

“Investors should know that when Canadians want something built, Canada will get it built. In a more volatile, dangerous and divided world, speed, certainty and predictability are competitive advantages,” he said.

“Canada will remain a country of high standards, but high standards do not require slow decisions.”

But the Coldwater Indian Band, in B.C, is opposing the speed at which Ottawa listed the new pipeline as a project of national interest.

The group says the federal government has yet to follow through on previous obligations to the community and did not allow for enough time during wildfire season to have meaningful consultations on the new pipeline.

“There is anger in our community today, as we hear that Canada has given the green light to a third Trans Mountain pipeline through the Coldwater Valley. The Crown’s duty to consult and accommodate Coldwater remains unfilled and Canada and Trans Mountain are not legally or respectfully operating in our reserve,” Vice-Chief Michael Smithers said in a press release.

Environmental groups also slammed the designation.

The world doesn’t want or need another pipeline, and Pacific Link will put billions of taxpayers dollars at risk, said Emilia Belliveau, the energy transition program manager at Environmental Defence.

“There is no excuse for this reckless project that will deepen the climate crisis, put endangered Southern Resident Orca Whales at risk of extinction, and benefit very rich oil companies at the expense of everyday Canadians,” Ms. Belliveau said in a statement.

Keith Stewart, a senior energy specialist at Greenpeace Canada said Ottawa should be focusing on renewable energy, not fossil fuels.

“The only thing moving faster than the Prime Minister’s bulldozing of environmental laws and Indigenous rights is the unprecedented speed with which our would-be future customers in Europe and Asia are building solar power and wind farms to protect themselves against increasingly unreliable and conflict-ridden oil and gas imports,” Mr. Stewart said in a statement.

The business community, however, largely viewed the designation as a positive move that would boost growth in Canada’s energy sector.

“This designation demonstrates that the federal government recognizes what this project will mean for Canada’s economic prosperity and sovereignty,” the Business Council of Alberta said in a statement.

Bryan Detchou, the senior director of natural resources, environment and sustainability for the Canadian Chamber of Commerce, said the Pacific Link is a “prime example” of a major project in the national interest.

“Getting our resources to Asia-Pacific markets is a path to more production, prosperity and a brighter future for workers, their families and communities,” he said in a statement.

“This path will strengthen Canada’s role on the world stage, connecting our resources with new customers while helping support the stability and resilience of global supply chains, and reinforcing our reputation as a trusted partner to our allies.”