In a strategic effort to reduce Canada’s economic reliance on the U.S. market, Prime Minister Mark Carney and Alberta Premier Danielle Smith have announced the formal designation of the proposed Pacific Link oil pipeline.
Carney made the announcement in Fort McMurray, saying the project is in Canada’s natural interest.
Carney says the Major Projects Office will work to finalize conditions by Sept. 1, 2027 to get shovels in the ground.
Canada has long relied on the United States as its main oil customer. However, an ongoing trade dispute with Washington made finding new global buyers an urgent priority for Prime Minister Carney when he took office in March 2025.
Alberta Premier Danielle Smith has pushed for the same goal, emphasizing at a recent energy conference in Fort McMurray that Alberta needs direct access to international markets to stay competitive.
The project will still require detailed regulatory work, Indigenous consultation and continued private-sector investment before moving into construction.
Alberta said the new pipeline is estimated to produce more than $265 billion in royalties for the province over its 50-year lifespan.
The project could create up to 140,000 jobs during construction, as well as another 50,000 annual jobs when complete.
Indigenous communities along route were given just two months for consultations, and that was still more than the government initially planned.
The consultations were to only take place over one month but was extended to two after Indigenous leaders raised concerns about the tight timeline.
A summary of those consultations says Indigenous groups decried the lack of information about the project which prevented them from fully assessing its impact.
Prime Minister Mark Carney promised his major projects agenda would not interfere with the Canada’s obligations under the United Nations Declaration on the Rights of Indigenous Peoples.
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