CANADA — The federal government has designated the proposed Pacific Link oil pipeline a project of national interest under the Building Canada Act, placing the Alberta–British Columbia proposal on a streamlined federal review path.

Prime Minister Mark Carney announced the designation Thursday in Fort McMurray. The government says the project would add capacity to move one million barrels of oil a day toward Asian markets.

Designation begins the next stage

The announcement does not mean construction has begun. Ottawa says the final concept, route mapping, surveys, costs, procurement and workforce plans remain to be developed.

The Major Projects Office and Canada Energy Regulator are working toward a September 1, 2027 target for conditions covering matters including Indigenous rights and environmental protection.

Ownership and the proposed route

Canada and Alberta are to hold equal ownership stakes, with at least 10 per cent offered to Indigenous communities through loan guarantees. Pembina is identified as a private investor and Trans Mountain will lead development.

Ottawa describes a southern route that would avoid the North Coast and Great Bear Sea. It says the Major Projects Office consulted more than 130 Indigenous communities near potential routes, as well as the B.C. government.

Reuters places the plan in the broader effort to diversify Canada’s economy away from the United States. The next test for readers is the project’s detailed route and approval conditions, rather than the designation alone.

Sources: Prime Minister’s Office, October 1; Reuters, October 1.

Supporting image: Existing Trans Mountain pipeline, September 2021; representative file photo by David Stanley / Wikimedia Commons, CC BY 2.0. Resized.