Carney expected to announce West Coast pipeline national interest designation today in Fort McMurray
The decision on whether to grant the Alberta-to-West Coast pipeline the designation would mark the first project approved under the Building Canada Act since Bill C-5 passed over a year ago.
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Prime Minister Mark Carney is expected to announce Thursday in Fort McMurray whether the Alberta-to-West Coast pipeline will receive a national interest designation under the Building Canada Act. If approved, it would be the first project to receive the designation since Bill C-5 passed more than a year ago.
The Building Canada Act gives Ottawa power to issue special conditions for projects covering a dozen federal laws. An implementation agreement signed in May set October 1 as the deadline for Carney's decision. That same agreement stated pipeline construction and a separate Pathways carbon capture project would be "mutually dependent."
In August, Ottawa posted in the Canada Gazette its intention to move ahead with the designation, noting that Indigenous consultation was already underway. Energy Minister Tim Hodgson told the Globe and Mail he expects the Major Projects Office to complete its work on time, allowing the project to receive the designation.
When Carney first announced the project in 2025, he said taxpayers wouldn't foot the entire bill. However, no private sector proponent has stepped up to pay for the pipeline entirely. Pembina Pipeline Corp. is the only private-sector player involved, having entered a non-binding agreement earlier this year for a 10 per cent stake during construction, with an option for another 10 per cent once the project enters commercial operation. Ottawa and Alberta will split the remaining cost through Trans Mountain Corp. and the Alberta Petroleum Marketing Commission.
Lance Mortlock, managing partner at EY Canada, said a "chicken and egg" scenario exists: producers have shied away from big-ticket investments partly due to shortage of pipeline infrastructure. "My sense is they've been waiting to see if some of the conditions start to change," Mortlock said. He added that industry has welcomed Ottawa's moves to simplify the regulatory process, rollback of Trudeau-era environmental policies, and beefed-up tax incentives. Smaller scale, shorter-term pipeline expansion projects to the U.S. and West Coast are now in development. "We will start to see the companies develop big capital projects again," Mortlock said. "Do I think that we're going to see the mega mines that we saw 10 years ago? Probably not. But do I think we're going to see 150,000, 200,000-barrel-a-day in situ expansion? Yeah, for sure."
What Indigenous groups remain in consultation, and have any raised objections to the designation?
If approved, what federal conditions or requirements will be attached to the designation?
We'll update this story as answers emerge.
By the numbers
When is Carney expected to announce the pipeline decision?
Prime Minister Mark Carney is expected to announce the decision on Thursday, October 1, 2026, in Fort McMurray.
What stake does Pembina Pipeline Corp. have in the project?
Pembina Pipeline Corp. has entered a non-binding agreement for a 10 per cent stake during construction, with an option for another 10 per cent once the project enters commercial operation.
Who will split the remaining cost of the pipeline?
Ottawa and Alberta will split the remaining cost through Trans Mountain Corp. and the Alberta Petroleum Marketing Commission.
