Canada Rushes to Build Massive New Oil Pipeline to Asia
Canada is pushing forward with plans for a massive new oil pipeline to Asia. The proposed 1 million-barrel-per-day project would give Alberta another route to sell its crude exports beyond the US market.
The pipeline, which would run from Alberta to southern British Columbia, has been deemed a project of national interest by Prime Minister Mark Carney. This designation allows it to bypass provincial reviews and go straight to a single federal review process, aiming for completion by September 1, 2027.
Trans Mountain Corp. and Pembina Pipeline would lead the project, with the federal and Alberta governments holding the majority stake. Indigenous communities would have at least 10% ownership in the pipeline.
The estimated cost of construction is between C$35.2 billion and C$43.7 billion. Ottawa claims the project could generate more than C$20 billion in annual GDP, create up to 140,000 jobs during peak construction, and produce C$100 billion in government revenue by 2060.
Currently, Canada sends over 90% of its crude exports to the US, with most of it flowing through the Trans Mountain pipeline. The new pipeline would provide an alternative route to Asia, which has become increasingly important since the Iran war disrupted Middle Eastern oil flows and sent Asian refiners searching for barrels that don't have to pass through the Strait of Hormuz.