Canada’s Carney closes pipeline deal to expand oil exports beyond US | Oil and gas news

Ottawa says the future pipeline will reduce economic dependence on the United States amid Donald Trump’s trade war.

By AFP and the Associated Press

Published on Jul 3, 2026 Jul 3, 2026

Canadian Prime Minister Mark Carney has reached an investment deal with British Columbia to build a major oil pipeline, overcoming initial opposition from the westernmost province.

The future pipeline is expected to transport 1 million barrels of oil per day – from the oil-rich province of Alberta, across all of British Columbia, to the country’s west coast – giving Canada new access to Asian markets and reducing its economic dependence on the United States.

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“It’s time for action,” Carney said at a news conference with Danielle Smith, the conservative-leaning Premier of Alberta.

“The best route for a new pipeline is one that crosses an existing pipeline, south through the Trans Mountain Corridor, to our Pacific coast, the gateway to the fastest growing markets in the world,” Carney said.

Carney has set a goal for Canada to double its non-U.S. exports over the next decade and said a pipeline could reduce the price cut on current oil sales in U.S. markets.

The pipeline would closely follow a route already taken by the Trans Mountain pipeline.

It would stretch from Bruderheim, northeast of Edmonton, Alberta, to the south coast of British Columbia, delivering more than a million barrels per day to oil tankers and then to Asian markets.

Smith said the Alberta government is partnering with the federal Trans Mountain Corporation and Calgary-based Pembina Pipeline on what he calls the West Coast Pipeline.

“The world is calling on Canada to step up and provide the stable, democratic and reliable energy supply that countries around the world are seeking,” said Mr. Smith.

Smith wants Alberta to double its oil production to 8 million b/d over the next 10 to 15 years.

Smith has long complained that Carney’s predecessor, Justin Trudeau, hobbled the province’s energy sector and fueled separatist sentiment.

Alberta is holding a public vote in the fall on whether to hold a referendum on leaving Canada.

British Columbia and some First Nations oppose the construction of a pipeline through northern British Columbia.

“The tanker ban will remain in effect. We will protect the northern coast of British Columbia,” Carney said earlier in Vancouver.

Carney also said Thursday he would compensate British Columbia for environmental risks if a pipeline is built in the southern part of the province.

A previous memorandum of understanding between Ottawa and Alberta included an adjustment to the tanker ban off parts of British Columbia’s coast, but British Columbia Premier David Eby also said Thursday that he had secured a commitment to keep the northern tanker ban in place, protecting the province’s pristine northern coast.

“This ensures that the ban on northern tankers remains in effect,” Eby said.

Trudeau opposed a pipeline that could run through northern British Columbia and the Great Bear Rainforest.

He approved a pipeline from Alberta to British Columbia’s south coast, the Trans Mountain Pipeline, but rejected the Northern Gateway project in the face of opposition from environmentalists and Indigenous communities.

Since the Trans Mountain expansion project on British Columbia’s south coast opened in 2024, about two-thirds to three-quarters of the crude shipped from Canada’s Pacific coast has gone to Asia, helping Canada reduce its dependence on the U.S. market.

Opening up to more global markets is part of Canada’s strategy to confront US President Donald Trump’s trade war.

Since taking office for his second term, Trump has imposed various tariffs through executive orders on energy products and goods from Canada and other countries.

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