CALGARY — Prime Minister Mark Carney stated Canadians would make “a lot of money” off the proposed Pacific Link crude oil pipeline, but did not disclose how much taxpayer money Ottawa would commit to its estimated $35.2-billion to $43.7-billion construction cost.On Thursday, Carney and Alberta Premier Danielle Smith announced that the proposed pipeline, with a capacity of one million barrels per day, would be designated a project of national interest under the Building Canada Act, advancing a West Coast oil export route that Smith’s government says could generate more than $265 billion in additional royalties over its operating life.During the press conference, Carney was asked how many billions of dollars Ottawa would ask taxpayers to provide to get the pipeline built and offered a brief assurance without providing a concrete figure.“The Canadian taxpayer is going to make a lot of money off this pipeline,” he said, without explaining possible funding arrangements or identifying how much financial risk the federal government would assume.He did, however, say that substantial government spending would take place before a final decision was made to proceed with the project..UPDATED: Pacific Link oil pipeline named project of national interest, could generate $265 billion in Alberta royalties.According to a government official, the work being done between now and September 2027 is estimated to cost the federal and provincial governments roughly $4 billion.That work would include engineering estimates, final cost estimates and equipment arrangements, alongside environmental processes and consultations with indigenous communities along the pipeline’s proposed route.The official said those costs, as well as the costs of developing the pipeline as a whole, will eventually be charged back to the shippers and recovered.However, it is unclear what would happen if the shippers don’t commit enough volume to cover the costs.Carney said the project conditions are set to be finalized by September 1, 2027, after the federal Major Projects Office has finished its streamlined review process with the Canada Energy Regulator to issue a conditions document.If the conditions are met, Pacific Link is set to create 140,000 jobs across the country, generate over $20 billion in GDP per year and generate $100 billion in government revenue by 2060, according to the federal government.The pipeline is part of Ottawa’s plan to double Canada’s non-US exports over the next decade while creating thousands of jobs and attracting billions in new investment..ALEXANDER: Equalization 2.0 — the hidden cost of the new pipeline.Alberta and Canada are set to share equal ownership of the pipeline, with indigenous communities being offered a minimum 10% ownership interest through federal and provincial indigenous loan-guarantee programs.However, one issue that continues to come up is the lack of a private-sector proponent for the project, with no energy-sector company having come forward yet to pay for the project in full.While Pembina Pipeline Corp. is involved in the project, it has only expressed interest in a 10% private-sector stake and has optioned up to another 10% once the pipeline is in operation.Carney pointed to Pembina’s participation — including its initial intention to spend money and possibly expand its involvement — as something that gave the federal government confidence that more private investors could become involved going forward.“There's a few things that give us confidence, supreme confidence,” he said.“We have immense respect for Pembina and them coming on board and bringing their expertise. We should [also] pay tribute as well to Trans Mountain, [who has] built a pipeline to the West Coast. Yes, it is publicly owned but it was operated by one of our top CEOs who now runs the Major Projects Office... So we're very pleased that we have that team on board.”
