{"id":674940,"date":"2026-05-17T05:52:45","date_gmt":"2026-05-17T05:52:45","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/674940\/"},"modified":"2026-05-17T05:52:45","modified_gmt":"2026-05-17T05:52:45","slug":"alberta-pipeline-canada-approves-construction-by-fall-2027-2","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/674940\/","title":{"rendered":"Alberta pipeline: Canada approves construction by fall 2027"},"content":{"rendered":"

OTTAWA \u2013 With a green light from the federal government, Alberta hopes to begin construction on a new oil pipeline as early as fall 2027, with oil flowing by 2033-34. But there remains no clear private sector investor to pay for it.<\/p>\n

Prime Minister Mark Carney and Alberta Premier Danielle Smith met in Calgary Friday to sign an updated deal. It outlines that the federal government will work towards designating the pipeline a project of national interest by Oct. 1, 2026, with a date of Sept. 1, 2027, for potential construction approval.<\/p>\n

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

\u201cToday is also about building trust in a Canada that works,\u201d the prime minister later added.<\/p>\n

As reported earlier<\/a>, the deal lowers the effective carbon price for Alberta to $130-a-tonne by 2040, instead of 2030, as previously laid out in the memorandum of understanding (MOU) signed by the pair in November<\/a>. That deal originally laid out conditions for the new pipeline to the West Coast.<\/p>\n

The province estimates the new pricing will save the industry about $250 billion by 2050.<\/p>\n

Friday\u2019s deal also includes headline carbon benchmarks of $115-a-tonne in 2030, $130 by 2035 and $140 by 2040. Alberta\u2019s headline carbon price is currently set at $95-a-tonne.<\/p>\n

That headline price is different from the effective price. The effective carbon price is the market value of carbon credits and offsets under Alberta\u2019s Technology Innovation and Emissions Reduction (TIER) system, which allows producers to buy credits to offset their cost.<\/p>\n

The deal also lays out that Alberta will regulate a minimum transfer price, or price floor, for TIER credits starting in 2030.<\/p>\n

Federal appreciation of oil sector a ‘welcome change’: analyst | Alberta Primetime Adam Legge, president of the Business Council of Alberta, joins Alberta Primetime’s Michael Higgins to discuss the pipeline deal between Ottawa and Alberta. <\/p>\n

Alberta hopes pipeline will be running by 2033-34<\/p>\n

Federal and Alberta government officials provided information to reporters ahead of the Smith-Carney signing on background on a not-for-attribution basis.<\/p>\n

A provincial government official said they\u2019d like to see the new pipeline to be up and running by \u201cno later\u201d than 2033-34.<\/p>\n

But there are no answers about whether a private proponent is in the offing.<\/p>\n

When asked if Alberta expects to have a private sector proponent by the July 1 deadline to submit its proposal to the Major Projects Office (MPO), a provincial official said \u201cstay tuned\u201d and that \u201cwork continues.\u201d<\/p>\n

An official said Alberta is currently the proponent for the application, and it will remain the proponent up until the province provides its submission to the MPO by July 1, promising more details after.<\/p>\n

The agreement also echoes the prime minister\u2019s promise Thursday of \u201cno Pathways, no pipeline,\u201d with both parties agreeing that building an oil pipeline and building the carbon capture Pathways Project are mutually dependent.<\/p>\n

Friday\u2019s agreement doesn\u2019t specify, however, any conditions for Pathways to be up and running before or alongside pipeline construction. A government official said that\u2019s up to separate conversations between the two governments and Pathways that \u201cwill continue in the comings weeks to finalize\u201d a separate deal.<\/p>\n

Earlier this month<\/a>, the companies behind the Pathways Project, now known as the Oil Sands Alliance, wrote in a press release that \u201cthe pace of change has been too slow,\u201d and urged the federal and provincial governments to \u201curgently reform their regulatory and fiscal frameworks.\u201d<\/p>\n

\"\"Alberta Separatism Supporters fly flags in support of Mitch Sylvestre as he submits his signatures for a separation referendum to Elections Alberta in Edmonton, on Monday, May 4, 2026. THE CANADIAN PRESS\/Jason Franson Will separatism sentiments detract private investment?<\/p>\n

Speaking to reporters in Calgary, Smith was asked repeatedly about whether separatism sentiments in Alberta will negatively impact attracting private investment. <\/p>\n

Smith did not answer directly, but insisted a push for separatism is \u201ccoming down.\u201d<\/p>\n

\u201cI\u2019d like for us to have Albertans feel such confidence that Canada is working for them, that that separatist sentiment goes back to historically low levels,\u201d Smith said. \u201cWe\u2019re not quite there yet. There\u2019s a few more things that we need to do, but I think these kinds of agreements help to get us there.\u201d<\/p>\n

In his own press conference, Carney stressed how the new deal is \u201cabout Canada working\u201d and \u201cco-operative federalism.\u201d<\/p>\n

How will pipeline impact emissions targets?<\/p>\n

In a statement, Canadian Climate Institute president Rick Smith said the agreement \u201cwill put Canada\u2019s target of net zero by 2050 well out of reach.\u201d <\/p>\n

\u201cIt also means that Canada will be on path to achieve its 2030 target at a much later date, creating more than a decade of delay for needed progress,\u201d the statement added.<\/p>\n

NDP Leader Avi Lewis, meanwhile, criticized the Carney government and called the announcement an \u201cofficial surrender to the oil and gas lobby.\u201d<\/p>\n

\u201cBy gutting carbon pricing to the point of irrelevance, it has dismantled the last federal climate measure standing. We now have a federal government that no longer even pretends to rein in big corporate polluters,\u201d Lewis said in a statement.<\/p>\n

\"\"Avi Lewis NDP Leader Avi Lewis hold a press conference with his party on Parliament Hill in Ottawa on Monday, April 13, 2026. THE CANADIAN PRESS\/Sean Kilpatrick <\/p>\n

When asked about climate concerns, Carney insisted both the federal government and Alberta are committing to low emissions and net zero by 2050 through \u201ca series of investments and commitments and market frameworks.\u201d<\/p>\n

\u201cThis is climate action. This is investment. This is moving forward,\u201d he added.<\/p>\n

Canada has committed to reducing greenhouse gas emissions by 40 to 45 per cent below 2005 levels by 2030, and a 45\u201350 per cent reduction by 2035. But in recent months, Carney and his cabinet ministers have dodged questions about those commitments.<\/p>\n

On Thursday, when asked if the federal government still plans to meet those targets, Carney would not answer directly, but said an update is coming.<\/p>\n

\u201cWe are putting in place a series of initiatives that will make material emission reductions. We\u2019ll update our climate plans and our emission reduction targets in due course,\u201d he said.<\/p>\n

\"\"File photo — Conservative Leader Pierre Poilievre participates in a media availability outside West Block on Parliament Hill in Ottawa, on Wednesday, April 29, 2026. THE CANADIAN PRESS\/Justin Tang File photo — Conservative Leader Pierre Poilievre participates in a media availability outside West Block on Parliament Hill in Ottawa, on Wednesday, April 29, 2026. THE CANADIAN PRESS\/Justin Tang Conservatives push for new pipeline by end of year<\/p>\n

In response to Friday\u2019s announcement, Conservative Leader Pierre Poilivere acknowledged Smith\u2019s \u201chard work\u201d but accused Carney of keeping \u201cin place every anti-development law\u201d from former prime minister Justin Trudeau.<\/p>\n

Poilievre also outlined his party\u2019s plan for a pipeline without an industrial carbon price, saying he would \u201capprove Alberta\u2019s submission within 100 days of receiving it\u201d and start construction for a new pipeline to B.C.\u2019s west coast \u201cby the end of 2026.\u201d<\/p>\n

\"\"British Columbia Premier David Eby B.C. Premier David Eby speaks with reporters before the First Ministers Meeting in Ottawa, Thursday, Jan. 29, 2026. THE CANADIAN PRESS\/Adrian Wyld Eby: \u2018Stop rewarding bad behaviour\u2019<\/p>\n

British Columbia\u2019s Premier David Eby did not hold back on Friday from his ongoing criticism towards Alberta\u2019s push for a new pipeline.<\/p>\n

\u201cAs a country, it\u2019s time to stop rewarding bad behaviour,\u201d Eby said in a statement. \u201cIt cannot be the case that the projects that get prioritized in Canada are those where a premier threatens to leave the country.\u201d <\/p>\n

In his statement, Eby also highlighted 35 projects in B.C. that need co-ordination with, and support from, the federal government, saying these should take precedence over a pipeline that \u201chas yet to identify a proponent or a route.\u201d <\/p>\n

Eby will be meeting with Carney next week in Vancouver, with the prime minister saying the two \u201cwill address a series of issues directly in the interests of British Columbia.\u201d<\/p>\n

The language in Friday\u2019s deal has Canada and Alberta talking to B.C. \u201cimmediately in a trilateral discussion on the pipeline application,\u201d during potential development and construction, and \u201cto further the economic interests of British Columbia related to their own projects of interest that involve the province of Alberta, including interties.\u201d<\/p>\n

Friday\u2019s deal also stipulates the federal government will fully respect Canada\u2019s duty to \u201cconsult obligations with Indigenous Peoples,\u201d both as it works to name the pipeline a project of national interest, and as it determines conditions for construction and development.<\/p>\n

With files from CTV News\u2019 Stephanie Ha, Spencer Van Dyk and Rob Buffam<\/p>\n

‘The urgency is for clean water legislation\u2019: AFN chief urges First Nations priorities over pipeline AFN National Chief Cindy Woodhouse Nepinak questions the urgency of a pipeline as First Nations still await critical clean water legislation. <\/p>\n","protected":false},"excerpt":{"rendered":"OTTAWA \u2013 With a green light from the federal government, Alberta hopes to begin construction on a new…\n","protected":false},"author":2,"featured_media":671994,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[194295],"tags":[712,49,48,20739],"class_list":["post-674940","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ottawa","tag-apple-news","tag-ca","tag-canada","tag-ottawa"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/674940","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=674940"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/674940\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/671994"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=674940"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=674940"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=674940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}