Alberta, Ottawa agree on southern pipeline route in new export plan

Alberta and the federal government have agreed on a southern West Coast pipeline route as part of a new plan to expand Canada’s energy exports to Asia.

The project will be led by federally owned Trans Mountain Corp., in partnership with Pembina Pipeline Corp., which may take up to a 20 per cent non-binding economic stake over time. Prime Minister Mark Carney said the southern corridor, which uses existing Trans Mountain rights-of-way, is the “fastest and most cost-effective” option.

The agreement marks a shift from Alberta’s earlier preference for a northern coastal route, which faced stronger environmental and Indigenous opposition and would have required changes to British Columbia’s tanker ban.

Alberta Premier Danielle Smith said the southern route is now seen as the most practical option based on updated analysis. The pipeline will still undergo Indigenous consultation and federal review, with Ottawa’s Major Projects Office expected to decide by Oct. 1 whether it is in the national interest.

The project remains without a confirmed private-sector lead investor and includes discussions around potential Indigenous ownership participation as part of broader energy policy negotiations.