Canada fast-tracks Pacific oil pipeline to reduce US dependence as
Alberta separation vote nears
[October 02, 2026] By
ROB GILLIES
TORONTO (AP) — Canadian Prime Minister Mark Carney on Thursday
fast-tracked a proposed oil pipeline capable of carrying one million
barrels a day to the Pacific coast, which could reduce the country’s
dependence on the United States and mend relations with oil-rich Alberta
as separatists push for a referendum on leaving Canada.
Appearing with Alberta Premier Danielle Smith in Fort McMurray, at the
heart of Canada’s oil sands, Carney designated the Pacific Link pipeline
as a project of national interest under legislation his government
enacted to accelerate major infrastructure projects.
A bid to keep Alberta in Canada
Alberta is holding a public vote on Oct. 19 on whether to hold a
referendum on leaving Canada. Smith has long complained that Carney’s
predecessor, Justin Trudeau, hindered Alberta’s energy industry and
fueled separatist sentiment.
Smith said she would vote to keep Alberta in Canada and described the
roughly 22% support for separation recorded in a recent poll as “still
too high for my liking.”
“I don’t like the fact that many of our fellow citizens have given up on
Canada,” she said, calling the pipeline an example of how “cooperative
federalism can work in action.”
Asked what message Albertans considering separation should take, Carney
said it demonstrated that “Canada is working” and showed what Canada
could achieve together.
Ian Brodie, a University of Calgary political science professor and
former chief of staff to Conservative Prime Minister Stephen Harper,
said the announcement could still help separatists by underscoring
Alberta’s dependence on Ottawa.
“There’s no reason this pipeline couldn’t have been fast-tracked in
July, so we’ve lost three months in the project,” Brodie said. “It’s a
reminder that Alberta has to have a sympathetic prime minister in order
to grow its oil sector. We don’t control our fate.”
A pipeline to loosen the US grip
Carney said Canada had a “once-in-a-generation opportunity to become an
energy superpower” and end its reliance on a single trading partner.
“Today, 90% of Alberta’s oil goes to the United States,” he said.
“Pacific Link will materially reduce that dependence” by opening access
to growing Asian markets.
The government described Canada’s reliance on U.S.-bound oil
infrastructure a “structural vulnerability.” It said Pacific Link and
improvements to the Trans Mountain system could cut the share of fixed
pipeline capacity directed to the U.S. from around 83% to between 65%
and70%.
The initiative comes as President Donald Trump’s trade war and threats
against Canadian sovereignty push Carney to reduce Canada’s longstanding
economic dependence on the U.S.
The proposed 1,250-kilometer (775-mile) pipeline would run from
Bruderheim, Alberta, to a deep water port near Delta, in British
Columbia, largely following the existing Trans Mountain corridor.
[to top of second column] |
Prime Minister Mark Carney speaks during a news conference in Fort
McMurray, Alberta, Canada, on Thursday, Oct. 1, 2026, regarding the
Pacific Link pipeline project. (Greg Halinda/The Canadian Press via
AP)
 Questions over money and
opposition
The project is expected to cost between $25 billion and $31 billion,
but significant questions remain about its financing and whether
producers will commit to using it.
Its designation does not amount to final approval. Proponents must
still settle the engineering, costs and environmental conditions
before deciding whether to proceed.
The federal and Alberta governments are contributing roughly $2.8
billion before the main private investor, Pembina Pipeline Corp.,
has committed its share of the construction costs. Pembina holds a
10% economic interest and would decide whether to invest by the time
a final investment decision is made, a federal official said.
Asked how much federal taxpayers could ultimately contribute, Carney
said: “The Canadian taxpayer is going to make a lot of money off
this pipeline.” He declined to provide a figure.
An open season next spring will gauge how much capacity producers
are willing to contract. Officials said there was significant
interest but acknowledged that the project might not attract enough
shippers or financing to proceed.
A senior government official said investors were watching to see
whether Canada could approve major projects more quickly, noting
that the Trans Mountain expansion took 14 years to progress from
launch to first oil.
The pipeline also faces opposition from Indigenous communities and
environmental groups. The government said most Indigenous
communities consulted were not prepared to support the project’s
listing, citing concerns about its route, environmental effects,
marine shipping and treaty rights.
Carney said the “real intensive consultation process will begin
now.”
Canada, Alberta and the project’s owners have committed to offering
Indigenous communities an ownership stake of at least 10%.
The government also acknowledged that the pipeline was expected to
facilitate increased oil production and generate additional
emissions.
Carney said final regulatory conditions were expected by September
2027, with the pipeline projected to begin operating in 2032 or
2033.
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