Alberta submitted a proposed southern route for a new West Coast oil pipeline to the federal Major Projects Office on July 2, and Canada has begun the process to consider listing it as a project of national interest under the Building Canada Act.

Such a designation would accelerate federal consideration but would not itself authorize construction. Before a decision is made, the Major Projects Office will consult potentially affected Indigenous communities. The federal government plans to give notice by Oct. 1, 2026, if it intends to move forward with listing the project.

The pipeline proposed by the Alberta government would carry approximately one million barrels of crude oil a day along a corridor of roughly 1,250 kilometres.

The route would largely follow the existing Trans Mountain corridor and would not require any change to the federal Oil Tanker Moratorium Act, which restricts large tankers carrying crude oil from using designated ports along B.C.’s north coast. The precise route has not yet been finalized.

Although Alberta and the federal government are emphasizing the project’s potential economic benefits, it faces major financial, environmental and political risks that could determine whether it delivers the returns its backers promise.

The promised economic gains

The West Coast pipeline is linked to a broader federal initiative called Pathways Plus, which combines the pipeline with oilsands production growth and a large carbon capture project.

Together, the pipeline, carbon capture project and production growth are projected to create approximately 175,000 new jobs across the country. The carbon capture component, known as the Pathways Project, is separately projected to contribute up to $16.5 billion to Canada’s GDP and $12.2 billion in labour income.

The Alberta government also estimates the broader initiative could increase Canada’s real gross domestic product by more than 0.6 per cent annually by the 2040s.

Some of........

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