On November 27, 2025, Canada and Alberta signed a Memorandum of Understanding to unlock the full potential of Alberta's energy resources. On May 15, 2026, both governments built upon this by announcing an Implementation Agreement to give industry the certainty they need to invest, drive major commitments to sustainability, and unlock our world-class natural resources.
Our partnership with Alberta harnesses our shared ambition to build a stronger, more sustainable, more independent Canadian economy - one that diversifies our energy exports and builds a clean and prosperous future for all Canadians.
Today, Canada and Alberta have further delivered on those commitments by reaching an agreement to work together to grow the economy while lowering emissions.
This agreement delivers on joint action to:
- Diversify global markets for Canada's energy products through a new pipeline toward Asian markets;
- Reduce emissions through the construction of a world-leading carbon capture utilisation, and storage project;
- Generate significant economic opportunity for Indigenous Peoples; and
- Strengthen our position as a global energy superpower and to build a strong, prosperous, sovereign Canada.
New pipeline toward global markets
To transport one million barrels of oil daily toward global markets, Canada and Alberta are pursing the following actions:
- Alberta has submitted a proposal for an oil pipeline toward global markets.
- Canada is today referring the pipeline proposal to the Major Projects Office (MPO), who will now initiate the process to consider listing the proposed project as a national interest project under the Building Canada Act (BCA) by October 1, 2026.
- MPO will immediately begin consultations with Indigenous groups, provinces, and territories.
- Canada and Alberta will continue engaging with British Columbia (B.C.) on the submission and any future development and construction as well as the potential economic and financial benefits to British Columbians of the proposed pipeline.
Ownership group
The project proposes an interprovincial pipeline to transport heavy crude oil from Alberta to the west coast of B.C. to diversify and increase exports to new and growing Asian markets. To accomplish this, an ownership group comprised of Trans Mountain Corporation (TMC), Alberta Petroleum Marketing Commission (APMC), and Pembina Pipeline Corporation (Pembina, TSX:PPL) will form and lead a new jointly owned company:
- Pembina's economic interest through construction will be 10% with the opportunity for up to an additional 10% once the project enters commercial operation.
- TMC and APMC will own equal shares of the balance of the project.
In addition, there will be a real and meaningful opportunity for Indigenous equity participation. Consultations with respect to this participation will begin immediately.
Roles and responsibilities of TMC and Pembina
TMC will be responsible for the development and execution of the project and subsequent operation of the pipeline. As part of this work, TMC will:
- Explore opportunities to optimise between the operation of the project and the Trans Mountain pipeline system;
- Lead stakeholder and Indigenous engagement and consultations;
- Apply for and meet all permitting and regulatory requirements; and
- Obtain all land access rights necessary to construct and operate the project
Pembina will be a strategic investor and use its expertise and commercial efforts to strengthen the commercial and technical viability of the project development and delivery. Pembina will contribute expertise in contracting, budgeting, engineering and construction activities, and will include participation in governance.
Proposed pipeline route
A proposed corridor for the length of the pipeline has been identified. The routing of the new pipeline will essentially follow the existing Trans Mountain route.
The proposed project corridor would begin at a receipt terminal in the Bruderheim area of Alberta. There, it will collect crude oil from various pipelines, serving as a central hub where the product will be measured, stored and then transferred into the pipeline. The proposed pipeline and pump stations will transport the crude oil to a proposed marine terminal in southern B.C. for loading onto marine vessels for transport toward export markets. The route will not require any adjustment to the Oil Tanker Moratorium Act.
Economic benefits
A new west coast oil pipeline will ensure that Alberta's oil reserves can deliver greater prosperity for Canadians through increased government revenues, high-paying jobs and international investment attraction:
- Employment impacts based on direct and indirect effects could peak at approximately 140,000 jobs at the height of construction.
- For Alberta, this would be approximately 45,000 jobs; for B.C., this would be approximately 70,000 jobs.
- As the pipeline transitions from construction into operation, annual direct and indirect job impacts could average around 50,000 jobs.
- Approximately 15 per cent of the total Canadian jobs impact could accrue outside B.C. and Alberta.
Indigenous benefits, ownership and consultation
Canada, Alberta, and Pembina are committed to respecting the rights recognised and affirmed by Section 35 of the Constitution Act, 1982 in accordance with their respective practices and policies. The parties collectively recognize the importance of consistent and early engagement and meaningful consultation with Indigenous Peoples while advancing economic reconciliation opportunities.
Economic opportunities for Indigenous communities will be significant and be achieved through a mix of equity participation, business development, contracting opportunities, jobs, training and employment:
- The project will include an Indigenous equity purchase right.
- This Indigenous equity purchase would be drawn equally from Canada and Alberta's shares in the project, supported equally by the Alberta Indigenous Opportunities Corporation and the Canada Indigenous Loan Guarantee Corporation.
- In addition to potential equity purchase and consultation in respect of the project, the parties intend to pursue further meaningful Indigenous participation, including capacity funding and contracting and employment opportunities.
Next steps
Canada will immediately commence consultations with Indigenous communities in order to inform its decision on whether to list the project in the national interest, under the Building Canada Act.
Pathways Memorandum of Understanding
Canada, Alberta and the Oil Sands Alliance Parties are committed to growing clean and conventional energy production to reach our export, trade diversification, and national security goals, while reducing the emissions intensity of our heavy oil production.
On July 2, 2026, Canada, Alberta and the Oil Sands Alliance (Canada Natural Resources Limited, Suncor Energy Inc., Cenovus Energy Inc., Imperial Oil Limited and ConocoPhilips Company) have entered into a Memorandum of Understanding (MOU) to be confirmed in definitive agreements this Fall.
The MOU sets forth four objectives:
- Expanded Market Access: Expansion and diversification of global market access for Canadian oil including through the West Coast Oil Pipeline.
- Production Growth: Supporting the development of fiscal and regulatory frameworks to enable substantial oil sands development and production growth.
- Emissions Reduction: The shared objective for the Oil Sands Alliance to reduce emissions by 16 million tonnes per annum ("Mtpa") net (aligned with the Canada-Alberta Implementation Agreement):
- 6 Mtpa (net) of the Pathways Project of Carbon Capture and Storage ("CCS") by Jan 1, 2035;
- 10 Mtpa (net) of Additional Emissions Reductions achieved through the expansion of the Pathways Project, deployment of other emissions reduction technologies, or projects deploying improved production practices focused on lowering emissions.
- 5 Mtpa (net) of Additional Emissions Reduction projects will be online by Jan 1, 2040; and
- 5 Mtpa (net) of Additional Emissions Reduction projects will be online by Jan 1, 2045
- In exchange for meeting these emissions commitments, the Pathways. Companies that are compliant will pay carbon taxes on a stringency rate that rises by 1% instead of 2%.
- Indigenous Peoples: Respecting consistent and early engagement and meaningful consultation with Indigenous Peoples while advancing Indigenous economic opportunities relating to the West Coast Oil Pipeline.
