Business

Pacific Link gets national-interest designation as Alberta’s west-coast pipeline moves closer to reality

By ·

The federal government has formally listed Pacific Link under the Building Canada Act as a project of national interest, giving the proposed pipeline access to an accelerated federal review process. The project is designed to move roughly one million barrels of crude oil per day from Bruderheim, Alberta, to a deepwater terminal near Delta, B.C., largely along a southern corridor that follows existing Trans Mountain infrastructure. Ottawa and Alberta say the designation is intended to give proponents greater certainty while the route, engineering, environmental conditions and consultation requirements are finalized. If approvals and Indigenous consultation are completed, Alberta says early construction could begin as soon as Sept. 1, 2027.

The emerging ownership structure would put Trans Mountain Corporation, the Alberta Petroleum Marketing Commission and Pembina Pipeline at the centre of development, with Indigenous communities offered a minimum equity stake. Alberta’s major-project registry currently lists an estimated cost of about $43.7 billion, while Ottawa says the project could create as many as 140,000 jobs at peak construction and upstream activity, add more than $20 billion annually to GDP and help reduce Canada’s reliance on the U.S. as an oil customer. Those are government projections rather than guaranteed outcomes, but they explain why both Premier Danielle Smith and Prime Minister Mark Carney are presenting Pacific Link as a major piece of their broader trade-diversification strategy.

The national-interest designation does not mean the pipeline is approved or ready for construction. Federal officials say the next year will include regulatory review, route work and continued consultation with affected First Nations, while some Indigenous leaders have already criticized the speed and scope of the consultation used before the designation. The Union of B.C. Indian Chiefs says the process has not adequately addressed title and rights and is demanding that free, prior and informed consent be respected. Pacific Link has therefore crossed an important political threshold, but its most difficult regulatory, legal and financing decisions are still ahead.