Canada and Alberta advance west coast pipeline project proposal and Pathways Project Carbon Capture Initiative - to build a stronger, more resilient Canadian economy

CALGARY, AB, July 2, 2026 /CNW/ - Today, the world faces an energy crisis on three levels: our cost of living, our climate, and our sovereignty increasingly depend on a nation's ability to supply and control its own energy. More than any other country, Canada is positioned to become the leading supplier of clean and conventional energy to ourselves and the world. To harness this opportunity, we need a new approach – one that builds sustainably and in full partnership with provinces, territories, Indigenous Peoples, and the private sector, and at the speed and scale this moment demands.

To that end, the Prime Minister, Mark Carney, today announced that the Government of Canada will refer the Government of Alberta's proposal for a west coast pipeline project to the Major Projects Office (MPO). This pipeline would transport one million barrels per day of oil toward global markets. The proposed route will largely follow the existing Trans Mountain corridor and will fully respect the Oil Tanker Moratorium Act.

Canada and Alberta will each share equal partnership in the project, and there will be a meaningful equity stake reserved for Indigenous Peoples. Consultations with Indigenous representatives will begin immediately. Pembina Pipeline Corporation will be a private sector investor and will contribute its expertise to the project's development, which will be led by Trans Mountain Corporation. With the governments' stake in this project, we will act as catalysts creating additional opportunity for private investment as the project advances. This is a historic partnership between government, the private sector, and Indigenous Peoples to build nation-changing infrastructure that unlocks our resources and delivers them to global markets. This moment is a once-in-a-lifetime opportunity – and Canada is moving quickly to seize it.

The MPO will now initiate the process for the pipeline's potential listing as a national interest project under the Building Canada Act and immediately begin consultations with Indigenous groups, provinces, and territories. Listing under the Act means that the project would undergo a streamlined review that upholds rigorous environmental standards and fully respects the rights of Indigenous Peoples, while streamlining the federal permitting process. Should the project be listed as one of national importance by the MPO, it will be subject to the conditions set by the Office. Throughout this process, the MPO will engage with the Government of British Columbia, and all decisions will be informed by meaningful consultations with Indigenous communities.

To ensure Alberta will export some of the lowest-carbon intensity oil in the world, the Government of Canada, the Government of Alberta, and the Oil Sands Alliance have reached an agreement to advance construction of the Pathways Project. Pathways will be one of the world's largest carbon capture and storage projects, and alongside other emissions reductions commitments in this agreement, it will achieve 16 million tonnes of emissions reductions per year.

Together, the construction and operation of a west coast pipeline project and the Pathways Project will create approximately 175,000 new jobs in Alberta, British Columbia, and across the country. In addition to the economic development opportunity inherent in Indigenous Peoples participating in holding an ownership stake in the pipeline, the project will generate significant economic opportunity for Indigenous communities through business development, contracting opportunities, jobs, training, and opportunities for equity ownership.

The initiatives announced today reflect the Memorandum of Understanding between the Government of Canada and the Government of Alberta reached in November 2025, and its Implementation Agreement reached on May 15, 2026. The agreement reached with the Oil Sands Alliance gives industry the certainty they need to invest and build. It includes major commitments to sustainability and unlocks our world-class natural resources.

This is cooperative federalism at work. Today's agreement realises the enormous potential of Canada and Alberta when we build together. In a more dangerous and divided world, Canada is focused on what we can control – we are building our strength at home, diversifying our export partners, and fulfilling our potential as an energy superpower.

Quotes
"In the face of a global energy crisis, Canada controls our own energy and our future. We are unlocking the full potential of our natural resources and ensuring our independence, sustainability, and prosperity for generations to come. Today, we are capitalising on this opportunity by unlocking $200 billion of new investment across the country. Canada will become the global supplier of choice for our allies and partners around the world."
-- The Rt. Hon. Mark Carney, Prime Minister of Canada

"Canada has everything it needs to become an energy superpower, but only if we build the infrastructure to get our resources to market. Alberta has done its part by putting forward a responsible, world-class proposal and selecting the strongest route to Canada's west coast. A west coast oil pipeline will create tens of thousands of jobs, generate tens of billions in new provincial and federal revenues, and make Canada more secure and self-reliant. This project will define Alberta's and Canada's economic future."
-- The Hon. Danielle Smith, Premier of Alberta

"The project represents a once-in-a-generation opportunity to advance nation-building energy infrastructure that strengthens Canada's economy and expands access to global markets for Canadian energy. We are proud to participate in this national priority that brings together the Government of Canada, the Province of Alberta, Indigenous partners, and industry."
-- Scott Burrows, President and Chief Executive Officer of Pembina

Quick facts

• A new west coast oil pipeline will strengthen Canada's energy exports while creating jobs, attracting investment, and increasing government revenues.
  • Up to 140,000 jobs are expected during construction and operation.
• The Pathways Project will contribute more than $16 billion to Canada's GDP, and support more than 40,000 jobs annually.
• Building on today's announcement with Alberta, Prime Minister Carney and the Premier of British Columbia, David Eby, signed the new Canada-British Columbia Cooperative Prosperity Agreement, which will further accelerate the construction of major energy and trade corridors throughout the province while building the trade infrastructure we need to ship Canadian energy to new markets around the world. Through these initiatives, Canada's government is catalysing over $200 billion in new investment, while advancing our trade agenda across Asia.
• Today's announcement builds on recent progress by Canada and Alberta as agreed in the MOU signed in November 2025:
  • In March 2026, Canada and Alberta reached an agreement-in-principle to reduce oil and gas methane emissions by 75% below 2014 levels by 2035 in Alberta.
  • 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 to get major infrastructure built faster.
  • In May 2026, Canada and Alberta signed the Implementation Agreement that sets out the framework to implement the November 2025 MOU and translate that shared intent into economic growth and investment. This includes developing priority projects, increasing Alberta's oil, gas, and electricity production, and advancing progress toward net-zero greenhouse gas emissions by 2050.
• Through the MPO, launched in August 2025, the Government of Canada is driving tens of billions of dollars in further investments, while creating the conditions for a better connected, more productive, and ambitious country.
  • With today's announcement, the MPO is advancing a total of 23 nation-building initiatives across nuclear, LNG, critical minerals – such as nickel, graphite, and tungsten – and transportation infrastructure. Together, these projects represent over $135 billion in investments in our economy and more than 150,000 new jobs.
  • Already, the Contrecœur Container Terminal Project and the Nouveau Monde Graphite project, in Québec, have both broken ground – less than seven months after being referred to the MPO. The MPO has also helped the Nouveau Monde Graphite project finalise important offtake agreements and LNG Canada's proposed Phase 2 expansion reach an agreement that will finalise conditions to enable a potential final investment decision this year.
  • Last month, the government initiated the process for three projects referred to the MPO to be listed as projects of national interest under the Building Canada Act. The projects are the Mackenzie Valley Highway Project, the Grays Bay Road and Port Project, and the Nuclear Waste Management Organization's Deep Geological Repository.

Related products

• Strengthening our sovereignty, diversifying our exports, reducing emissions, and building a stronger economy
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• Canada and Alberta strike new partnership to lower emissions, unlock our natural resources, and build a stronger, more sustainable, and more competitive economy

Associated link

•         Major Projects Office

This document is also available at https://pm.gc.ca

SOURCE Prime Minister's Office

PMO Media Relations: [email protected]