CALGARY — Ottawa expects to give a proposed West Coast oil pipeline national interest status by Thursday, advancing a project largely funded by taxpayers as Alberta prepares for an October 19 independence referendum.Energy Minister Tim Hodgson told the Globe and Mail the federal Major Projects Office is completing the work needed to meet the October 1 deadline, although he stopped short of guaranteeing the designation.“They need to finish that work. I have every reason to believe they will do the work and get it done on time,” Hodgson said Tuesday.“But we’re not going to prejudge that. They’ve got to do the work.”The proposed pipeline is central to Prime Minister Mark Carney’s efforts to repair relations with Alberta and open more overseas markets for Canadian oil. More than 85% of Canada’s oil exports go to the United States, leaving producers heavily dependent on a single customer amid ongoing trade tensions.A national interest designation under the Building Canada Act would put the project through an accelerated federal approval process. Carney’s government committed in May to making the designation by October 1..Elizabeth May says Alberta’s West Coast oil pipeline has 'no business case'.The project’s financing has changed substantially since Carney first floated the pipeline in 2025, when he said it would be privately built and financed.Under the arrangement announced in July, Ottawa and Alberta would cover the vast majority of construction costs. Pembina Pipeline Corp., the only private-sector participant identified, signed a non-binding agreement to take a 10% stake during construction.The designation deadline comes less than three weeks before Albertans vote on whether to remain in Canada or establish the legal groundwork for a second, binding separation referendum.The Globe reported that oil, gas and business executives close to both governments expect Ottawa to meet its deadline, citing the political stakes surrounding Alberta’s future in Confederation.However, concerns about indigenous consultation could complicate the federal timetable.More than 100 indigenous groups are located along the pipeline’s potential right of way. The proposed route was announced in July, leaving roughly three months before the planned designation.An unnamed source familiar with the Major Projects Office’s outreach told the Globe that consultations would not be complete by Thursday and questioned whether proceeding would be consistent with the Building Canada Act.Ottawa has repeatedly said accelerated approvals would not override indigenous consultation requirements.The Coldwater Indian Band in British Columbia has raised concerns about the pace of the process and what it describes as a lack of meaningful consultation.Vice-Chief Michael Smithers said the community requested a delay in the designation on September 18 but had received no response by Tuesday afternoon..MACLEOD: The West Coast pipeline — how Alberta was played.The Major Projects Office extended the band’s deadline to submit concerns after the community spent two of the previous three months under a wildfire state of emergency.Coldwater previously opposed the Trans Mountain expansion over concerns about risks to its aquifer.Mark Podlasly, CEO of the First Nations Major Project Coalition, said his organization has no formal position on the proposed pipeline but stressed that indigenous communities must participate from the outset.He added that involvement needs to cover both environmental and economic aspects of projects crossing their territories. Podlasly recently briefed Carney’s cabinet during its retreat in Banff.British Columbia’s government also opposes the pipeline, although it has said it would not challenge the federal project because it falls under Ottawa’s jurisdiction.Carney announced funding for other BC projects and initiatives in July. On Tuesday in Vancouver, he announced another $1.2 billion for ocean monitoring, science, ecosystem protection and marine incident prevention.The prime minister argued his government could protect sensitive ecosystems while pursuing major construction projects.Alberta Premier Danielle Smith, meanwhile, said she expects a federal decision soon and has continued pressing Ottawa to meet the October 1 target.Speaking at an energy services industry event in Calgary on Monday, Smith said her chief of staff, Rob Anderson, had advised her against lowering expectations for conditional approval.“We expect the project to receive the green light, which will unlock Alberta’s energy potential,” she said.Smith also said she was increasingly confident the pipeline could be among the first major projects to begin construction under Ottawa’s new approach.She said conflicts in the Middle East and Ukraine have increased demand for dependable energy supplies, giving Canada an opportunity to attract buyers seeking alternatives.Alberta argues the pipeline would help its producers reach higher-priced international markets while reducing their reliance on the United States.
