Alberta to Build New Pipeline to Boost Canada's Oil Exports to Asia

Alberta plans to build a new oil pipeline to the Pacific coast, potentially tripling Canada's oil exports to Asia. The project would involve a 1 million barrel per day pipeline to British Columbia and would be spearheaded by the Alberta government. The plan aims to accelerate construction and reduce Canada's reliance on the US market amid the ongoing trade war. The project would require federal approval and is expected to face opposition from British Columbia's Premier David Eby.

Alberta is spearheading a new initiative to build an oil pipeline to the Pacific coast, aiming to more than triple Canada's oil exports to Asia. The project, which would carry up to 1 million barrels of crude oil per day, is being led by the Alberta government with support from major Canadian energy operators, including Enbridge Inc., South Bow Corp., and Trans Mountain Corp. Alberta Backs New Pipeline to Boost Canada’s Oil Exports to Asia^[1]

The primary goal of this pipeline is to reduce Canada's heavy reliance on the U.S. market, particularly amidst ongoing trade tensions. Alberta Premier Danielle Smith has been pushing for additional oil export capacity since taking office, with the proposed pipeline expected to take oil to Prince Rupert or Kitimat, British Columbia. The project is designed to accelerate construction by submitting an application to the federal government by next May, potentially increasing pressure on Prime Minister Mark Carney's government to act on the proposal. Alberta Backs New Pipeline to Boost Canada’s Oil Exports to Asia^[1]

The Alberta government plans to contribute C$14 million ($10 million) for early planning and has formed an advisory group comprising representatives from the pipeline companies, Indigenous communities, and major oil producers like Cenovus Energy Inc. and Vermilion Energy Inc. Alberta Backs New Pipeline to Boost Canada’s Oil Exports to Asia^[1]

However, the project faces potential opposition from British Columbia's Premier David Eby, who has expressed skepticism about the pipeline's cost and efficiency. Eby has stated that the government should focus on existing projects that already have private backing, arguing that the pipeline would cost at least C$60 billion. Alberta Backs New Pipeline to Boost Canada’s Oil Exports to Asia^[1]

Canada's only existing oil conduit to the BC coast is the Trans Mountain line, which ended in the Vancouver region. The recent expansion of this line, which was completed after the Canadian government bought it from Kinder Morgan Inc., faced significant delays and cost overruns. Alberta Backs New Pipeline to Boost Canada’s Oil Exports to Asia^[1]

The Alberta government is preparing to file an application for the new pipeline with the federal government's Major Projects Office, with Enbridge, South Bow, and Trans Mountain working together to draft potential routes. The financial risk for Alberta is expected to be minimal, significantly less than the $1.3 billion invested in the ill-fated Keystone XL project. Alberta plans to support proposal for new oil pipeline, Globe and Mail reports^[2]

Prime Minister Carney has indicated that a new oil pipeline to the British Columbia coast is likely to be deemed a project of national importance, suggesting potential federal support. Alberta plans to support proposal for new oil pipeline, Globe and Mail reports^[2]