{"id":672388,"date":"2026-05-16T01:31:17","date_gmt":"2026-05-16T01:31:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/672388\/"},"modified":"2026-05-16T01:31:17","modified_gmt":"2026-05-16T01:31:17","slug":"alberta-ottawa-agreement-sets-timeline-for-proposed-west-coast-oil-pipeline-centralalbertaonline-com","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/672388\/","title":{"rendered":"Alberta, Ottawa agreement sets timeline for proposed west coast oil pipeline – CentralAlbertaOnline.com"},"content":{"rendered":"

Alberta and Ottawa say a proposed west coast oil pipeline could move into design<\/a> and construction as early as Sept. 1, 2027, under a new implementation agreement tied to federal review timelines, carbon pricing and major-project review.<\/p>\n

The Alberta government announced Friday the agreement sets out a pathway for a new oil pipeline to Asian markets, following the Alberta-Canada Energy Agreement signed in November 2025.<\/p>\n

Related Stories:<\/p>\n

The proposed west coast pipeline would transport more than one million barrels of oil per day through a strategic port to Asian markets, according to the Alberta release.<\/p>\n<\/p>\n

The agreement does not amount to final construction approval, with the Alberta release saying permissions are still needed before design and construction could begin.<\/p>\n

In its release, the province said the federal government has committed to facilitating a prompt review of Alberta\u2019s submission to the Major Projects Office so the project can be designated as a project of national interest by Oct. 1, 2026.<\/p>\n<\/p>\n

That review is intended to obtain the permissions needed for design and construction to begin as early as Sept. 1, 2027, according to the Alberta release.<\/p>\n

A federal release said Alberta will submit a comprehensive proposal for a bitumen pipeline to Asian markets to the Major Projects Office by July 1, 2026.<\/p>\n

Ottawa will then pursue designation of the project as a project of national interest under the Building Canada Act by Oct. 1, 2026.<\/p>\n

The federal release said all steps and decisions must be consistent with Canada\u2019s duty to consult Indigenous Peoples and informed by the outcomes of that consultation.<\/p>\n

Premier Danielle Smith said Friday the agreement marks a major step for Alberta and Canada.<\/p>\n

\u201cToday is a good day for Alberta and it\u2019s a good day for Canada,\u201d Smith said.<\/p>\n

Smith said the agreement sets out a pathway to the construction of a new oil pipeline to Asian markets, with design and construction potentially beginning as early as Sept. 1, 2027.<\/p>\n

Prime Minister Mark Carney said the agreement is about building trust with investors and international partners.<\/p>\n

\u201cWe\u2019re building trust of investors that Alberta and Canada are reliable and attractive destinations, where opportunities are plentiful,\u201d Carney said. \u201cThe rules are clear, and one project means one review.\u201d<\/p>\n

Carbon pricing agreement<\/p>\n

Industrial carbon pricing in Alberta is also set to change under the agreement.<\/p>\n

According to the Alberta government, the implementation agreement will allow the province to avoid a significant increase to the federally mandated industrial carbon price, saving industry partners approximately $250 billion in compliance costs over the next two decades to 2050.<\/p>\n

Under the Alberta release, the industrial carbon price will remain at $95 per tonne for the rest of 2026.<\/p>\n

It will increase to $100 per tonne starting in 2027 and remain there until 2030.<\/p>\n

By 2035, the price of carbon will reach $130 per tonne and increase by 1.5 per cent per year to 2040.<\/p>\n

The province said the previous federal policy would have required a carbon price of $170 per tonne by 2030.<\/p>\n

The federal release separately said Canada and Alberta have agreed to an effective carbon price of $130 per tonne by 2040.<\/p>\n

That target will be reached through annual benchmarks for the headline carbon price, including $115 by 2030 and $130 by 2035, according to the Prime Minister\u2019s Office.<\/p>\n

The headline carbon price will increase to $140 per tonne by 2040, the federal release said.<\/p>\n

Sector-specific stringency factors for large emitters in the oil and gas and electricity sectors are also part of the agreement, according to the Alberta release.<\/p>\n

The province also said the agreement will target a market price on TIER credits of $130 per tonne by 2040 and advance a floor price into the system starting in 2030.<\/p>\n

Canada and Alberta will also jointly issue 75 million tonnes of carbon contracts for difference to support emissions-reduction projects, with costs shared equally between the two governments, according to the Prime Minister\u2019s Office.<\/p>\n

Carney said the governments will have \u201cskin in the game\u201d to make the carbon market work.<\/p>\n

Business reaction<\/p>\n

Candace Laing, president and CEO of the Canadian Chamber of Commerce, said the agreement provides long-term certainty for industry.<\/p>\n

\u201cThis agreement delivers long-term certainty for industry based on jurisdictional alignment on industrial carbon pricing, backstopped by government guarantees in the form of contracts for difference,\u201d Laing said in a statement.<\/p>\n

Laing said Canada must also advance one-project, one-review, reduce red tape and pursue regulatory and tax reform.<\/p>\n

Opposition reaction<\/p>\n

No CO2 Pipelines Alberta, a coalition opposed to carbon pipelines and storage projects, criticized the agreement.<\/p>\n

In a statement, co-founder Dr. Amil Shapka said the coalition includes \u201cfarmers, rural landowners, and Indigenous communities.\u201d<\/p>\n

\u201cWe have a range of backgrounds and politics, but we all agree on this: the Pathways carbon capture and storage project is based on a dangerous and untested technology that will cost billions in public dollars and result in negligible carbon emissions in the unlikely event it actually works as designed,\u201d Shapka said.<\/p>\n

The group said the agreement moves Alberta closer to what it called a \u201cdangerous, ill-advised carbon pipeline and storage project.\u201d<\/p>\n

Electricity and emissions<\/p>\n

The agreement also includes commitments on electricity, methane and carbon capture.<\/p>\n

Canada and Alberta have agreed to work toward doubling Alberta\u2019s grid by 2050, including by expanding nuclear, wind, solar, geothermal and lower-carbon forms of generation while maintaining grid stability, according to the federal release.<\/p>\n

A joint Electricity Working Group will identify projects, technologies and investments needed to achieve net-zero emissions in Alberta by 2050.<\/p>\n

The Alberta government said the working group will explore low-emission technologies, including nuclear, geothermal, abated natural gas, wind, solar and hydrogen.<\/p>\n

The Prime Minister\u2019s Office said the agreement is also meant to better enable investment for renewables and expand the supply of electricity for AI and data centre projects.<\/p>\n

Other parts of the implementation agreement include a commitment not to proceed with a federal oil and gas emissions cap.<\/p>\n

The Alberta government said the federal Clean Electricity Regulations will also be held in abeyance in Alberta.<\/p>\n

Smith said the two governments have \u201cremoved barriers that were holding back investment,\u201d including the Clean Electricity Regulations and the proposed oil and gas emissions cap.<\/p>\n

A methane equivalency agreement, targeted for the end of 2026, is expected to lower methane emissions from Alberta\u2019s oil and gas sector by 75 per cent below 2014 levels by 2035, according to the federal release.<\/p>\n

The Alberta government said the agreement-in-principle would allow Alberta to continue regulating methane under its existing system while achieving that reduction.<\/p>\n

Indigenous consultation and B.C. impacts<\/p>\n

Both governments said work on the proposed pipeline remains subject to consultation with Indigenous Peoples.<\/p>\n

The Alberta government said the agreement fully respects Canada\u2019s duty to consult with Indigenous Peoples.<\/p>\n

The province said both governments remain committed to early, consistent and meaningful consultation with First Nations and M\u00e9tis communities.<\/p>\n

The governments will also work with Indigenous communities to support opportunities for ownership and other partnerships, according to the Alberta release.<\/p>\n

Smith said the governments remain committed to \u201crespecting constitutionally protected rights\u201d and \u201cengaging in early, consistent, and meaningful consultation with First Nations.\u201d<\/p>\n

Carney said co-operation must respect the duty to consult and ensure Indigenous economic benefits and opportunities for co-ownership exist in every project.<\/p>\n

He also said British Columbians should share in substantial economic benefits from projects that affect them.<\/p>\n

Canada and Alberta also agreed to continue engaging with British Columbia on the pipeline application, any future development and construction, interties with Alberta and other projects of national interest within B.C.\u2019s jurisdiction, according to the federal release.<\/p>\n

Pathways project<\/p>\n

The proposed pipeline will be dependent on the Pathways Project, which the Prime Minister\u2019s Office described as the largest carbon capture, utilization and storage project in the world.<\/p>\n

Pathways is now known as the Oil Sands Alliance.<\/p>\n

Canada and Alberta reaffirmed their commitment that the project would achieve 16 million tonnes of annual emissions reductions, the federal release said.<\/p>\n

It said that would be equivalent to taking 90 per cent of vehicles off the road in Alberta.<\/p>\n

The project would also generate $16.5 billion in GDP, $12.2 billion in labour income and up to 43,000 jobs annually, according to the Prime Minister\u2019s Office.<\/p>\n

Both governments remain committed to working with Oil Sands Alliance companies to advance completion of what Alberta called the world\u2019s largest carbon capture, utilization and storage infrastructure project.<\/p>\n

Carney said the proposed pipeline depends on that alliance.<\/p>\n

Alberta said the project has the potential to position the province as a global leader in large-scale emissions reduction infrastructure through carbon capture, utilization and storage.<\/p>\n

Major-project review<\/p>\n

Previous federal-provincial work on project assessments also underpins the agreement.<\/p>\n

Canada and Alberta reached an agreement-in-principle in March 2026 to bring a \u201cone project, one review\u201d approach to major infrastructure initiatives in Alberta, according to the federal release.<\/p>\n

The Prime Minister\u2019s Office said the approach is meant to create a more streamlined assessment process, reinforce environmental protections and ensure the rights of Indigenous communities are respected.<\/p>\n

In April 2026, Canada and Alberta signed a Co-operation Agreement on Environmental and Impact Assessment to implement a streamlined and flexible impact assessment process.<\/p>\n

Since launching in August 2025, the Major Projects Office has supported 22 projects and transformative strategies representing more than $126 billion in investments, according to the federal release.<\/p>\n

The Alberta government said Friday\u2019s implementation agreement is meant to reduce regulatory uncertainty, expand market access and advance critical energy infrastructure projects.<\/p>\n","protected":false},"excerpt":{"rendered":"Alberta and Ottawa say a proposed west coast oil pipeline could move into design and construction as early…\n","protected":false},"author":2,"featured_media":672389,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[194295],"tags":[49,48,20739],"class_list":["post-672388","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ottawa","tag-ca","tag-canada","tag-ottawa"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/672388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=672388"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/672388\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/672389"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=672388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=672388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=672388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}