Alberta has formally pitched a new oil pipeline project to the west coast of British Columbia, aiming to transport more than one million barrels of oil daily to Asian markets. The proposed route runs from Bruderheim to the Roberts Bank export terminal in Delta, with estimated costs between $35.2 billion and $43.7 billion.
What is the proposed route and scale of the Alberta pipeline?
The proposed pipeline would largely follow the existing footprint of the federally owned Trans Mountain pipeline. According to the Alberta government, the route will run from Bruderheim, located northeast of Edmonton, to the Roberts Bank export terminal in Delta, B.C., south of Vancouver.
Alberta Premier Danielle Smith stated the project is intended to send over one million barrels of oil to Asian markets every day. Smith noted this move would reduce Canada’s current reliance on the United States for oil exports.
Mark Carney, who joined Smith for the announcement in Calgary, said the route is logical because an existing pipeline already serves as a “gateway to the world’s fastest-growing markets.”
The proposed project aims to utilize the existing Trans Mountain corridor to reach the Pacific coast, potentially streamlining the path to international markets.
How will the project be funded and managed?
The Alberta government’s submission to the federal Major Projects Office estimates the project’s total cost will fall between $35.2 billion and $43.7 billion, including contingencies. However, Smith said the specific details regarding funding and the ultimate cost to taxpayers “remains to be negotiated.”
Ownership of the project would be split between the federal government and the Alberta government, who would act as majority owners. The project is being developed in partnership with the federally owned Trans Mountain Corporation and Calgary-based Pembina Pipeline Corporation.
Pembina Pipeline Corporation is expected to hold a 10 per cent stake during the construction phase. Once the project is operational, Pembina has the opportunity to increase its stake to a total of 20 per cent.
When will construction begin and end?
According to the project submission, construction is scheduled to start as early as 2027. If the project follows the current timeline, it is expected to be finished by 2034.
Why did British Columbia agree to the pipeline deal?
The project follows a political compromise reached between the federal government and British Columbia. To secure B.C.’s cooperation, the federal government agreed to several terms, including providing B.C. with federal funding for other resource initiatives and ensuring the province receives fair compensation for the new pipeline.
A critical component of the agreement is that B.C. will maintain a ban on tanker traffic off the province’s North Coast. In exchange, the province has conceded that it cannot and will not challenge a federally-approved pipeline in court.
Despite the agreement, B.C. Premier David Eby expressed significant reservations. Eby told CBC News, “Don’t expect me or members of my government caucus to say we like this project.”
Will this pipeline change how much oil Canada sells to the U.S.?
According to Premier Smith, the primary goal is to increase access to Asian markets and decrease dependency on American buyers.
Frequently Asked Questions
What is the estimated cost of the pipeline?
The Alberta government estimates the project will cost between $35.2 billion and $43.7 billion, including contingencies.
Who will own the new pipeline?
The federal government and the Alberta government will be the majority owners. Pembina Pipeline Corporation will hold a 10 per cent stake during construction, with the potential to reach 20 per cent once it is operational.
Where will the oil be transported?
The pipeline will run from Bruderheim, Alberta, to the Roberts Bank export terminal in Delta, British Columbia, for shipment to Asian markets.
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