Ottawa and Alberta signed a memorandum of understanding on November 27 that sets a path for a new, privately financed pipeline to the Pacific Coast. The agreement also confirms that Canada will not implement the oil and gas emissions cap.
Both governments say the framework aims to diversify exports, strengthen energy security, and keep net-zero goals in view. The deal puts Indigenous co-ownership and benefits at the centre of any project. It also commits both sides to faster reviews and a single, coordinated assessment.
Path clears for West Coast pipeline
Under the memorandum, Alberta will act as proponent to advance an application for a bitumen pipeline that can move at least one million barrels per day. The plan targets access to Asian markets through a deep-water port, with the route to be defined in future filings.
If the project is ultimately approved and offers Indigenous participation, Ottawa says it would, if necessary, adjust the Oil Tanker Moratorium Act to enable exports from the north coast. The document also links the pipeline to Pathways Plus, a large carbon capture buildout that both parties describe as a prerequisite. An initial application is slated to be ready for the Major Projects Office by July 1, 2026.
“In the face of global trade shifts and profound uncertainty, Canada and Alberta are striking a new partnership to build a stronger, more sustainable, and more independent economy,” Prime Minister Mark Carney said.
He presented the deal as part of a broader push to cut reliance on a single export market. On the supply side, the memorandum also references a further Trans Mountain expansion concept of 300,000 to 400,000 barrels per day. Ottawa frames the package as industrial policy paired with emissions reduction. The focus is on private capital, faster permitting, and clear rules.
Tanker rules face possible change
The federal commitment to consider tanker law changes marks the most sensitive element. Coastal nations and British Columbia officials have long opposed heavy oil shipments on the north coast.
The memorandum does not settle that question, it sets up a process that includes B.C. in a trilateral talks table. It also binds both governments to early and meaningful engagement with rights holders. Any change to marine rules would follow only if the pipeline clears federal approvals and meets the Indigenous ownership and benefits test.
Alberta sees the deal as a reset after years of stalled export projects. “This is a really great day for Albertans,” Smith said.
Her government will lead technical work to shape a submission and recruit private backers. Carbon pricing in Alberta’s TIER system is set to ramp toward an effective minimum of C$130 per tonne, a point that remains under negotiation with Ottawa. The two sides also flagged nuclear power, grid interties, and data centre demand as part of a larger build program.
Timelines and delivery risks remain. A route must be chosen, a proponent must invest, and permits must survive likely court tests. Financing terms, Indigenous equity structures, and marine safety plans will be pivotal.
For now, the memorandum is a political bridge between two levels of government with different starting points. The test will be whether it converts into a filed application and a bankable project.