News Release
Advancing an oil pipeline to the west coast
Alberta and Canada have finalized key elements of the Alberta-Canada energy MOU, advancing the design and construction of a new west coast oil pipeline as early as Sept. 1, 2027.
The Alberta and Canadian governments have agreed on a pathway to the construction of a new oil pipeline to Asian markets commencing as early as Sept. 1, 2027. This landmark agreement is the result of the continued collaboration between the federal and provincial governments following the signing of the Alberta-Canada Energy Agreement signed in November 2025. The governments have agreed to implement several changes to their respective environmental policies that will lead to tangible outcomes that reduce regulatory uncertainty and create the conditions necessary for Alberta to significantly increase its energy production and exports to Asian and other global markets.
Today’s implementation agreement also results in Alberta avoiding a significant increase to the federally mandated industrial carbon tax saving Alberta’s industry partners approximately $250 billion over the next two decades to 2050.
“This agreement sends a clear message to investors and global partners that Canada and Alberta are serious about expanding market access, building major infrastructure and creating the conditions for long-term investment in our province’s energy sector. Alberta is ready to build, invest and partner, but we cannot afford to lose another decade. The door is open, and it’s time to turn shared ambition into real projects, jobs and results for Alberta and Canada.”
Danielle Smith, Premier of Alberta
“Today’s agreement reinforces that Alberta and Canada are lands where the opportunities are plentiful, the rules are clear, and one project means one review. We are building a Canada that works with a more prosperous, sustainable and resilient economy for all.”
Mark Carney, Prime Minister of Canada
A clear path to pipeline construction
While fully respecting Canada’s duty to consult with Indigenous peoples, this agreement contains a commitment by the federal government to facilitate the prompt review of the Alberta government’s submission to the federal Major Projects Office for a new west coast pipeline so it can be designated as a project of national interest by Oct. 1, 2026, with the intent of obtaining the permissions necessary so that design and construction of the pipeline may commence as early as Sept. 1, 2027.
An Indigenous co-owned oil pipeline to Asian markets would ensure the province and country are no longer dependent on just one customer to buy their most valuable resource. The proposed west coast oil pipeline would transport more than one million barrels of oil per day through a strategic port to Asian markets.
As this work advances, the governments of Alberta and Canada remain committed to respecting constitutionally protected rights, engaging in early, consistent and meaningful consultation with First Nations and Métis communities, and working with Indigenous communities to support opportunities for ownership and other partnerships.
“I’m encouraged to see the governments of Alberta and Canada take this next step toward advancing a new Indigenous co-owned pipeline to the west coast. This project would provide significant economic benefits and long-term prosperity for First Nations. It is critical that governments continue to engage and work in meaningful partnership with First Nations as this work moves forward.”
Jim Boucher, former Chief of Fort McKay First Nation and co-founder of Saa Dene Group
“For the Metis Settlements, a project of this scale will be a driver of long-term economic advancement. It will create jobs during construction and operations while strengthening skills, training and workforce capacity that extend beyond the project itself, supporting participation across industries and generations and helping build lasting economic stability and opportunity. I welcome the agreement between the governments of Alberta and Canada as an important step toward these shared outcomes.”
Dave Lamouche, president of the Metis Settlement General Council
“We commend the governments of Canada and Alberta for advancing key components of the MOU through collaborative action, including a commitment to develop a west coast pipeline through the Major Projects Office under a defined timeline, providing much-needed certainty needed by industry to invest capital. Today’s announcement is one more step forward, and this agreement comes at a pivotal moment in the history of global energy markets, recognizing the essential role played by Alberta and the energy sector in boosting Canada’s economic growth and realizing our collective ambition to become an energy superpower.”
Deborah Yedlin, president and CEO, Calgary Chamber of Commerce
Realistic industrial carbon pricing
Under the new carbon pricing agreement, the industrial carbon price will be substantially lower than the previous federal policy, which would have required a carbon price of $170 per tonne by 2030. Under this agreement, the headline carbon price will be rolled back substantially to $130 per tonne by 2035.
New agreement details:
The price of carbon will remain at $95 per tonne for the remainder of 2026 and will increase to $100 per tonne starting in 2027 until 2030.
By 2035, the price of carbon will reach $130 per tonne and will increase by 1.5 per cent per year to 2040.
The agreement on carbon pricing includes sector-specific stringency factors for large Alberta emitters in the oil and gas and electricity sectors under Alberta’s Technology, Innovation and Emissions Reduction (TIER) system.
The new agreement will also target a market price on TIER credits of $130 per tonne by 2040 and will advance a floor price into the system starting in 2030 to eliminate price volatility, bring predictability to Alberta’s industrial carbon market and attract investment in emission-reduction technologies.
This gives industry the time and certainty needed to plan, invest and deliver real emissions-reducing projects without undermining competitiveness.
“From Confederation onward, Canadian industry has been central to nation-building, translating government ambition into reality. Moments such as this are rare. Today’s announcement reflects the scale of ambition required for future generations. Once again, it is business that must rise to the occasion – with courage, capital, and a shared belief that we can build a great Canada together.”
Nancy Southern, chair and CEO, ATCO Ltd.
“We are pleased to see the agreement reached between the province and federal government on industrial carbon pricing, providing a clear pathway to grow our electricity sector and meet the ambitious goal of the federal electricity strategy to double our generation capacity by 2050. These commitments provide much-needed certainty to help us invest in our electricity system to provide affordable, reliable electricity for our customers well into the future.”
Mark Poweska, president and CEO, ENMAX
“Establishing both a clear carbon price and a meaningful price floor is critical to ensuring Alberta’s industrial carbon market delivers strong and consistent signals for investment. This agreement helps create the stability needed to accelerate deployment of emissions-reducing technologies, while supporting economic growth and positioning Canada to compete in a lower-carbon global economy.”
Adam Sweet, vice president, Western Canada, Clean Prosperity
“Carbon capture, utilization and storage projects like Enhance’s demonstrate how a durable carbon policy signal, combined with strong, functioning carbon markets activate world-scale decarbonization investments. Enhance invested early in CCUS, storing over eight million tonnes to date in our first project, and continues to invest in our CCS hub, with benefits felt in local, rural communities. This agreement strengthens that durable policy signal and we look forward to the market’s view of increased certainty in Alberta’s TIER system.”
Candice Paton, vice president, corporate affairs, Enhance Energy
Key agreement actions
Building on the landmark agreement reached in November 2025, Alberta and Canada have taken major steps to reduce regulatory uncertainty, expand market access and advance critical energy infrastructure projects. This work included:
Commitment not to proceed with a federal oil and gas emissions cap.
Abeyance of the federal Clean Electricity Regulations in Alberta.
Agreement to advance an Indigenous co-owned oil pipeline to Asian markets.
Agreement on more competitive industrial carbon pricing under Alberta’s TIER system.
Agreement-in-principle allowing Alberta to continue regulating methane under its existing system while achieving a 75 per cent reduction from 2014 levels by 2035.
Impact Assessment Agreement to streamline project reviews, reduce duplication and reinforce provincial jurisdiction.
Further action will be taken to establish a joint electricity working group with the federal government to explore low-emission technologies, including nuclear, geothermal, abated natural gas, wind, solar and hydrogen.
Pathways project
Both governments remain committed to working together with the Oil Sands Alliance (formerly Pathways) companies to advance the completion of the world’s largest CCUS infrastructure project.
This has the potential to position Alberta as a global leader in the development and implementation of large-scale emissions reduction infrastructure through carbon capture utilization and storage.
Through strengthened federal–provincial cooperation and continued engagement with industry and Indigenous partners, Alberta and Canada are taking practical steps to expand energy exports, attract investment and reduce emissions intensity while supporting economic growth while responding to global energy and security challenges.
Pinoy Edmonton News 