UPDATED: Alberta government slated to spend $14M in early planning for West Coast oil pipeline

The Alberta government has announced it will take the lead as the proponent in developing a major West Coast oil pipeline, bringing together industry experts and First Nations partners to submit a formal application for a project of national significance under the federal Building Canada Act.“This project application is about more than a pipeline; it’s about unlocking Canada’s full economic potential,” Premier Danielle Smith said in a statement..“By doing this the right way from day one with indigenous partners and industry expertise, we will deliver a proposal that proves this project is undeniably in the national interest.”The provincial government has allocated $14 million to help finance early planning, including cost estimates, indigenous engagement, and route assessment.The initiative will be supported by three major pipeline companies — South Bow, Enbridge, and Trans Mountain — and aims to deliver Canadian crude oil to the northwest coast of British Columbia..A technical advisory group, composed of experts in engineering, construction, indigenous relations, and market demand, will guide pre-front-end engineering and design work.The group includes Alex Pourbaix, executive chair of Cenovus; Roderick Graham, board director of the Alberta Energy Regulator; Corey Bieber, board director of Vermilion Energy; and Larry Kaumeyer, deputy minister of Energy and Minerals, among others.Kaumeyer told the media on Wednesday that the proposed pipeline would be a 42-inch bitumen line capable of transporting up to one million barrels per day.He described the project as “the shortest distance to get Alberta’s energy resources to tidewater” and said it would provide access to growing markets in Asia, where there is increasing demand for Canadian oil..UPDATED: Alberta government to lead new pipeline application to BC coast.He also pointed out that past pipeline projects, such as Energy East, Northern Gateway, and Keystone XL, were not completed, resulting in billions of dollars in lost revenue, and emphasized that the Alberta government will not own the pipeline or put taxpayers on the hook.Smith concurred, saying at a press conference on Wednesday that the province will not own or finance the project beyond early-stage support at the current time, but “Alberta will need to be at the table all the way through to completion,” in part due to indigenous consultation.“However, if you're asking me if I'm prepared to spend $34 billion on a government funded pipeline, the answer's no,” she said.“These are the types of projects that should be build by the private sector. We absolutely need to restore investor confidence so that some of those dollars will come back.”.Senior government officials said Indigenous communities in Alberta and BC are being engaged from the start, with co-ownership and partnership considered central to the project’s planning and execution, but they have said they are still in discussion as to what that would look like.Dale Swampy, president of the National Coalition of Chiefs, praised Alberta’s approach to economic reconciliation through oil and gas participation, saying, “We are happy that Alberta is leading an effort to get another pipeline to the West Coast, and we are especially happy that they have decided to engage with Indigenous nations in BC and Alberta right from the very beginning of the process.”Kaumeyer emphasized that early consultation with First Nations is critical.“We began that process on Monday, with a broad reach of outreach. It is absolutely paramount that we spend the time to ensure they are engaged at the front end,” he said..WATCH: Eby says Smith's pipeline 'not a real project,' calls it a 'distraction'.Officials say the pipeline would provide significant market access for responsibly and ethically produced Canadian crude, particularly to Asian markets including Japan, Korea, China, and India. Canada, with the fourth-largest proven oil reserves globally, has seen net export receipts of crude oil climb from $6 billion in 2000 to $130 billion in 2024.Smith acknowledged that the federal government’s tanker ban on BC’s north coast currently remains a barrier to a pipeline.She said she has told Prime Minister Mark Carney that repealing or amending the law is “essential” for the project’s success.Regarding investor engagement, Kaumeyer said the government will not actively seek private capital during the current application process, noting that potential process conditions under the Building Canada Act are not yet defined and could affect investors.“I think it would be very premature for us to have discussions with potential equity owners and capital investors, given the fact that we don't know what those conditions are truly going to be,” he said..EDITORIAL: Alberta takes charge: Time for a new pipeline to the West Coast.Government officials have said the new pipeline project is separate from the Pathways project, which focused on carbon sequestration, and noted that decarbonization measures will align with broader federal objectives for national interest projects.While no agreements are currently in place with pipeline companies to take over construction, officials are confident private capital will step in once the application is approved, citing strong demand for Alberta crude in Asian markets.The Alberta government expects to submit the formal application to the Federal Major Projects Office no later than spring 2026.“Once you have the permit, there’s a pretty well-understood path to construction,” Pourbaix said on Wednesday. “The real benefit will be getting this project on the short list and moving ahead within the next two years.”