Canada – PM Carney confirms southern Trans Mountain route for new Alberta pipeline
The announcement resolves two of the biggest overhangs on the pipeline file, the route and the Pathways financing structure, both of which had been unresolved as recently as this week, making this the most concrete step yet toward an actual construction timeline. Confirmation of the southern route via the existing Trans Mountain corridor, rather than a more contentious northern option through B.C., sidesteps the fiercest Indigenous and provincial opposition and improves the odds Ottawa formally designates the project in the national interest by its self-imposed deadline. With Pembina now attached as a private-sector partner, the announcement also addresses the “no private backer" gap Carney had flagged just days earlier, a key condition for the deal to advance.
—
Carney says Canada, Alberta and the oil sands alliance have agreed terms to launch the Pathways project, with Trans Mountain Corp building a new pipeline south to the Pacific Coast alongside Pembina Pipeline.
Summary:
- Prime Minister Mark Carney said Canada, Alberta and the oil sands alliance have agreed on terms to launch the Pathways carbon capture project, long treated as a prerequisite for a new pipeline
- Carney confirmed the best route for the new pipeline runs south through the existing Trans Mountain corridor to the Pacific Coast, rather than a northern route through British Columbia
- Trans Mountain Corporation will plan and construct the new pipeline
- Trans Mountain Corp will work closely with Pembina Pipeline, which Carney said will bring private-sector expertise and discipline to construction and operation
- The announcement follows a self-imposed July 1 deadline for Alberta to submit its pipeline proposal to Ottawa’s Major Projects Office, after which the federal government has until October to designate the project in the national interest
- Alberta has previously said pipeline design and construction could begin as early as September 2027 if the project proceeds on schedule
Canadian Prime Minister Mark Carney said late Thursday that Canada, Alberta and the oil sands alliance have reached agreement on the terms needed to launch the Pathways carbon capture project, clearing a major obstacle that had been treated as a precondition for approving a new oil pipeline to the Pacific Coast. Carney said the best route for the pipeline runs south through the existing Trans Mountain corridor rather than a more contentious path through northern British Columbia, a route long favoured by federal officials over Indigenous and provincial opposition to tanker traffic further north.
Under the terms outlined by Carney, Trans Mountain Corporation, the federally owned operator of Canada’s only oil pipeline reaching a Pacific port, will plan and construct the new line. The company will work closely with Pembina Pipeline, which Carney said will contribute private-sector expertise and discipline to the project’s construction and operation. The involvement of a private partner addresses a gap Carney himself had acknowledged only days earlier, when he confirmed the broader pipeline proposal still lacked a confirmed private-sector backer.
The announcement lands just after Alberta’s self-imposed July 1 deadline to submit a formal pipeline proposal to Ottawa’s Major Projects Office, a target set out in a memorandum of understanding between Carney and Alberta Premier Danielle Smith. Ottawa now has until October to decide whether to designate the project in the national interest. Carney and Smith have previously said design and construction of the pipeline could begin as early as September 2027 if the project stays on track, though the timeline still depends on further negotiation with British Columbia and First Nations communities along the proposed corridor.
The Pathways project, proposed by a coalition of major oil sands producers, is intended to capture and store a portion of the emissions generated by expanded oil sands output, offsetting some of the additional greenhouse gas impact of a new pipeline. Ottawa has repeatedly said it will not support new pipeline capacity without a parallel commitment to the carbon capture project, making Thursday’s agreement on financing terms a critical step in advancing both initiatives together.
This article was written by Eamonn Sheridan at investinglive.com.