A proposed pipeline that would carry up to one million barrels of oil a day from Alberta to the B.C. coast has been named the first project designated as being in the national interest by the federal government.
The pipeline, now officially called the Pacific Link, will be added to Schedule 1 of the Building Canada Act. The move is designed to speed up and combine parts of the approval process, including environmental reviews.
Prime Minister Mark Carney said the change means companies will know earlier where the federal government stands on major projects.
Government officials estimate the project could add up to $30 billion to Canada’s GDP each year, including about $20 billion from the pipeline itself. They also say it could create up to 140,000 jobs once approved.
The pipeline is expected to cost between $35.2 billion and $43.7 billion. Construction could begin after the federal government sets out the project’s conditions by Sept. 1, 2027, with the goal of having it operating by 2032-33.
The 1,200-kilometre pipeline would run from Bruderheim, Alta., to a deepwater port near Delta, B.C. The route would avoid northern B.C. and the Great Bear Sea.
The Alberta government and federally owned Trans Mountain Corporation would each own 45 per cent of the project, while Pembina Pipeline Corporation would hold 10 per cent during construction. Indigenous communities will also be offered at least 10 per cent ownership.
The project is intended to give Canada more access to international oil markets and reduce its reliance on exports to the United States.
Business groups welcomed the announcement, while environmental groups raised concerns about increased oil production and greenhouse gas emissions.
The federal government says the project will be paired with measures to reduce emissions, including carbon capture and methane reductions. It also says new ocean protections will help protect marine habitats near the Roberts Bank terminal.
NDP Leader Avi Lewis criticized the project, saying the government is rushing the approval process and weakening environmental protections.
Conservative Leader Pierre Poilievre said his party supports the pipeline but argued that the government needs to move from planning to construction.
