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Carney declared the pipeline a project of national interest, smoothening its way to a single federal regulatory review process.
Published On 1 Oct 20261 Oct 2026
Canada will fast track the approval process for a new proposed crude oil export pipeline to its west coast that could generate billions in revenue and boost economic growth, Prime Minister Mark Carney has said.
Carney made the announcement on Thursday to fast-track the pipeline, which is a crucial part of his bid to diversify the economy away from the United States and help lessen the effect of US President Donald Trump’s tariffs.
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Carney said Ottawa is officially listing the Pacific Link pipeline, which had been announced in July, as a project of national interest. That will ensure it proceeds through a single federal regulatory review process. He said Ottawa aimed to complete the process by September 1, 2027.
“A pipeline to the west coast is part of our mission to transform our economy, to double our non-US exports over the next decade … [and] to unlock our full potential as a global energy superpower,” he told reporters in Fort McMurray, hub of Alberta’s tar sands industry.
Ottawa says the 1 million barrel a day project would create 140,000 jobs and generate more than 20 billion Canadian dollars ($14bn) in gross domestic product (GDP) per year and 100 billion Canadian dollars ($70bn) in government revenue by 2060.
Canada currently has just one east-west oil export pipeline in Canada, the 890,000-barrel-per-day Trans Mountain pipeline. An expansion of that pipeline was completed in 2024, but it is already running at capacity.
For years, Canada has sent more than 90 percent of its crude oil exports to the US via pipeline. A new oil export pipeline could make Canada a major global energy supplier, as Asia’s top importers seek oil from outside the Middle East in the wake of the Iran conflict.
Filling the pipeline, however, would require new tar sands expansions of the type no company has undertaken in more than a decade.
The pipeline will be built by government-owned Trans Mountain Corp in coordination with Pembina Pipeline Corp. Alberta estimates it could cost between 35.2 billion Canadian dollars and 43.7 billion Canadian dollars ($24.7bn – $30.7bn).
The majority owners will be the federal government and the government of Alberta. Indigenous communities will be offered a minimum of 10 percent ownership interest.
Previous oil pipeline projects in Canada have faced strong opposition from environmentalists and Indigenous groups, resulting in the cancellation of some projects and leading to cost overruns and construction delays with others.
Carney made the announcement alongside Alberta Premier Danielle Smith in Fort McMurray in the heart of Canada’s tar sands, a move meant to mend relations with oil-rich Alberta as separatists push for a referendum on leaving Canada.
Alberta is holding a public vote on October 19 on whether to hold a referendum on leaving Canada. Smith has long complained that Carney’s predecessor, Justin Trudeau, hindered Alberta’s energy industry and fuelled separatist sentiment.
Smith said she would vote to keep Alberta in Canada and called the roughly 22 percent support for separation in a recent poll “still too high for my liking”.
“I don’t like the fact that many of our fellow citizens have given up on Canada,” Smith said, adding that the pipeline was an example of how “cooperative federalism can work in action”.
Asked what message Albertans considering separation should take from the announcement, Carney said it demonstrated that “Canada is working” and showed what the country could achieve by acting together.
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Saudi Arabia has restarted oil exports through its East-West pipeline after repairing damage from drone attacks earlier this month, restoring an important route that allows crude shipments to bypass the Strait of Hormuz, The Wall Street Journal reported Monday.
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Published on •Updated
The oil market spent Monday morning pricing in a weekend of bad news from the Gulf.
Brent for October and November deliveries gained over 3% and crossed $108 a barrel, while the US benchmark WTI for October rose 2.3% to around $102, both extending last week’s advance after each reclaimed the $100 threshold.
Prices moved following Saudi Arabia’s announcement that its East-West pipeline is temporarily closed after drone attacks.
The line carries crude across the kingdom to Red Sea ports, allowing oil to reach export terminals without passing through the Strait of Hormuz, so its loss removes the main alternative at the moment the strait itself is most dangerous.
That danger was also demonstrated on Sunday, when a merchant vessel was hit in the strait, killing one person and injuring three others, according to Iranian authorities.
Passage through the waterway now works very differently from before the war.
Vessels must obtain Iranian permission to transit, and Tehran is weighing a mechanism to charge service fees. Ships that fail to comply are routinely targeted, while US forces periodically bomb the Iranian coastline to contest Tehran’s claim to control the strait.
Diplomatic efforts have stalled too.
Oman has postponed planned talks between Iran and Gulf states on the future of the waterway, which carries a large share of the world’s seaborne oil trade.
The consequences are extremely visible at American pumps.
The US national average price of diesel crossed $6 a gallon on Friday for the first time in history, up from around $5.85 a week earlier and roughly 60% above the $3.71 drivers paid a year ago.
Petrol is also averaging $4.22 after setting records over the Labor Day weekend.
US President Donald Trump has pointed the finger elsewhere.
Speaking to reporters in Ireland on Sunday, where he was attending the Irish Open at his Doonbeg golf resort, Trump stated Ukrainian President Volodymyr Zelenskyy “has to stop knocking out diesel fuel in Russia.”
“Let him go after targets, but not diesel fuel, because he’s causing a shortage of diesel fuel,” Trump added.
Ukraine has struck more than 20 Russian refinery targets this summer, prompting Moscow to ban diesel exports.
On the flight back from his state visit to Ireland this weekend, Trump reiterated the claim.
However, the supply arithmetic suggests otherwise.
Analysts attribute roughly 800,000 barrels a day of lost diesel supply to Russia’s export ban, against about 1.2 million from disruption around the Strait of Hormuz, according to Lipow Oil Associates.
The wider picture is more lopsided still as crude flows through the strait have fallen from around 20 million barrels a day before the war to about 7 million.
Between them, the two wars have also shut refineries representing around 5 million barrels a day of capacity.
Additional sources • AFP
Saudi Arabia has closed its East-West oil pipeline due to a drone attack linked to Iranian-backed militias in Iraq. This pipeline is crucial for Saudi Arabia, as it allows the country to bypass the congested Strait of Hormuz, which has faced reduced tanker traffic due to an ongoing conflict between the U.S. and Iran. The Saudi Energy Ministry stated that the closure is a precautionary measure; the pipeline typically carries about 4 to 5 million barrels of oil per day, contributing 4% to 5% of global oil supply. The attack caused injuries and damage, but the exact impact on oil exports is still being evaluated.
President Trump, while attending a golf event in Ireland, suggested that Iran was likely responsible for the attack and predicted that oil prices would drop after the upcoming U.S. midterm elections. Recently, oil prices have surged, with diesel prices in the U.S. topping $6 a gallon due to tensions in the region. Reports surfaced that the Houthis, aligned with Iran, seized the strategic Perim Island in the Red Sea.
Crown Prince Mohammed bin Salman of Saudi Arabia reached out to Trump for military assistance against the Houthis, but Washington decided not to intervene directly at that moment, offering intelligence support instead. There were concerns that the attacks on the pipeline and Perim Island could escalate tensions further, especially since diplomatic efforts to resolve the war have stalled.
Iran’s parliamentary committee has stated that negotiations are futile unless the U.S. meets Iran’s demands, particularly concerning recognition of its control over the Strait of Hormuz. The Iranian foreign ministry announced plans for discussions with Gulf states in Oman regarding the strait. Meanwhile, Iraq’s government dismissed a military commander connected to the attack and has closed the Shalamcheh border crossing with Iran as a precaution to prevent further incidents.
The Saudis have not retaliated yet, following a request from Iraq’s prime minister, but they maintain the right to take necessary actions to protect their interests. Saudi Arabia’s oil production has plummeted to its lowest level in over 30 years, partly due to attacks on maritime vessels by Houthi factions. These forces, supported by Iranian guidance, are reportedly planning counterattacks to reclaim territories lost to the Houthis, who have advanced significantly along Yemen’s coast under Iranian direction. The Houthis have claimed that maritime navigation remains safe, except for Saudi vessels, which are subject to a ban.
With information from Reuters