The Alberta government is preparing to take the next step in its plans for a new West Coast oil pipeline, with a major announcement expected later this week.
The province says it will reveal new details on Thursday about its proposal to the federal Major Projects Office, the body created to speed up approvals for infrastructure projects considered to be in Canada’s national interest.
The proposed pipeline would carry up to one million barrels of oil per day from Alberta’s oil sands to a yet-to-be-selected port on the West Coast, creating a new export route to growing markets across Asia.
For Alberta, the project is about more than building another pipeline. It is seen as a long-term strategy to expand export capacity, improve market access and strengthen Canada’s energy competitiveness.
However, the project also faces significant hurdles.
Under an energy agreement signed between Alberta and the federal government last year, Ottawa’s support depends on the development of the Pathways Alliance carbon capture and storage project, which is intended to reduce emissions associated with increased oil sands production.
That condition has raised questions about whether major energy producers will be ready to commit.
Pipeline expert and former executive Dennis McConaghy believes the project’s success will largely depend on Canada’s largest oil sands companies, whose production would be needed to fill the pipeline.
He argues that many producers are unlikely to make long-term shipping commitments while facing higher carbon costs and the prospect of investing billions of dollars into carbon capture infrastructure. According to McConaghy, companies are looking for greater certainty around future climate policies before backing another major pipeline project.
Despite those challenges, Alberta remains optimistic. The province hopes the pipeline will receive national interest status by October, allowing construction to begin as early as September 2027.
