Alberta drives new pipeline to diversify oil exports

Canada’s oil industry is once again at a crossroads.

With production steadily rising and 90% of crude exports still flowing to the United States, Alberta is moving to break this dependency. 

The province is preparing a bold step: by spring 2026, it will formally submit a proposal for a new pipeline designed to reach British Columbia’s northwest coast and open new doors for international trade.

A Government-led initiative

What makes this project unusual is not the scale—capacity is projected at up to one million barrels of oil per day—but the fact that the provincial government itself is stepping forward as the official proponent. 

In the past, private companies have traditionally taken the lead.

But after years of regulatory delays, cost overruns, and high-profile cancellations, no firm has been willing to assume the risk. 

Alberta officials say they are ready to act as the driving force that could attract private investment once federal approval is secured.

Funding and industry support

To get the proposal off the ground, Alberta will allocate 14 million Canadian dollars (about $10 million U.S.) for design and feasibility work, according to Reuters. 

While the province has no intention of building or owning the pipeline, it has secured technical advice from major Canadian operators including Enbridge, South Bow, and Trans Mountain. 

None of these companies has committed to financing or constructing the project, but their involvement signals a willingness to support the concept in its early stages.

The federal dimension

Ottawa’s role is critical. Under Prime Minister Mark Carney, the federal government recently established a new office to fast-track natural resource projects, from mining to pipelines. 

Alberta is betting that this mechanism will help overcome the legal and regulatory bottlenecks that have plagued earlier ventures. 

The expansion of the Trans Mountain pipeline, for example, opened last year after years of setbacks and at a cost far higher than originally planned.

Obstacles still on the horizon

Even with political momentum, challenges remain. 

Industry leaders argue that real progress will require significant legislative changes, including the removal of Canada’s federal emissions cap on the oil and gas sector and the lifting of the ban on tankers along British Columbia’s northern coast. 

Without these adjustments, private companies may remain reluctant to commit billions to construction.

Why it matters now

For Alberta, the stakes are high. 

With crude output climbing, a lack of new export capacity threatens to limit growth and keep Canada overly dependent on U.S. markets. 

Diversifying routes to Asia and beyond would reduce exposure to tariffs and trade disputes while boosting the competitiveness of Canadian producers.

Looking ahead

Deputy Energy Minister Larry Kaumeyer has made clear that Alberta is not interested in becoming a pipeline operator. 

Instead, the province’s goal is to create a credible, federally approved project that private investors can confidently adopt. 

“We are confident there will be private capital to build this pipeline,” Kaumeyer said.

In the coming months, discussions between Alberta and Ottawa will determine whether this vision gains traction. 

If successful, the project could mark a turning point, transforming Canada’s oil export landscape and signaling that, even in a complex regulatory environment, bold initiatives still have room to move forward.

Alberta drives new pipeline to diversify oil exports