Ottawa Expected to Advance West Coast Oil Pipeline by October 1

Alberta Premier Danielle Smith says she remains confident that Ottawa will take a pivotal step by October 1 towards advancing the proposed West Coast Oil Pipeline, which would move one million barrels per day of Alberta crude to Pacific tidewater and Asian markets.

The pipeline is expected to cost between $35.2 billion and $43.7 billion, including contingencies, according to the province's major-project database. The current ownership proposal involves Trans Mountain Corporation, the Alberta Petroleum Marketing Commission, and Pembina Pipeline Corporation forming a jointly owned company, with Pembina having a 10% economic interest during construction.

Alberta is preparing new oil and gas investment incentives as Ottawa's regulatory and tax changes begin to line up behind major energy development. The province wants provincial oil production to rise substantially over the next decade, with a stated goal of increasing oil and gas output and exports to more than eight million barrels per day by 2035.

However, a new report suggests that Alberta's net zero emissions commitment could cost the economy nearly $400 billion through 2050. The pipeline depends on more production, which means companies like Canadian Natural Resources, Suncor Energy, and Cenovus Energy would need to sanction billions of dollars in new production and expansion projects.