Government of Alberta to Lead Effort to Build New Crude Pipeline in Canada

By Paul Vieira

OTTAWA--The province of Alberta said Wednesday it will lead an effort to build a new crude-oil carrying pipeline from the oil sands to the northwest Pacific coast.

The Alberta government's push to add crude pipeline capacity will mark a major test of Prime Minister Mark Carney's pledge to ramp up investment in key infrastructure projects and trade corridors, like pipelines.

Carney has thrown the federal government's support behind other key infrastructure projects, but a pipeline is not yet one of them. The approval of a pipeline could test the Canadian leader's political mettle in promising to revive the country's economy while making meaningful progress on carbon reduction.

Alberta Premier Danielle Smith said the province would act as the new pipeline's proponent, arguing private-sector companies are shying away due to regulations on carbon emissions from energy companies and crude-oil transportation. Alberta, home to vast oil-and-gas reserves, believes that energy companies and investors would take over the project once government approval is secured.

The pipeline proposal, once submitted, is contingent on Carney repealing or easing some regulations, most notably a ban on the loading or unloading of crude oil on tankers along British Columbia's north coast. Alberta is planning to submit a formal application for approval from Ottawa by May, 2026.

Smith said the pipeline proposal is focused on "unlocking Canada's full economic potential," and would help increase energy shipments to growing Asian markets such as Japan, South Korea and India. "We are charting a path to secure Canada's energy future for generations while bringing the world's most ethically and responsibly produced energy to market."

Smith clashed frequently with former Canadian prime minister Justin Trudeau, over his administration's environmental policies. Smith and other energy executives had argued Trudeau's measures dissuaded investment in the resource sector and threatened to dampen living standards in western Canada, which relies on commodities to power growth.

Her relationship with Carney appears to be relatively positive, in large part due to Carney's promises to capitalize on the country's resources to help rewire an economy squeezed by U.S. tariffs. Last month, Carney said his administration could back a new pipeline depending on the willingness from the energy sector to reduce carbon emissions.

Carney has also promised to revisit some of the Trudeau administration's previous environmental policies that have irked the energy sector.

Write to Paul Vieira at paul.vieira@wsj.com