Through the Alberta-Canada energy MOU, the federal and provincial governments have agreed on a framework that could enable construction of a new west coast oil pipeline as early as September 1, 2027. For ACA members, this matters. Major project activity depends on clear timelines, predictable regulatory processes and conditions that support long term investment, and this agreement signals progress on all three.
The proposed pipeline would move more than one million barrels per day to Asian markets under an Indigenous co-owned structure. The federal government has committed to a defined review timeline, with a national interest decision targeted for October 1, 2026. Greater clarity in process and timelines is what helps move projects from discussion to decision. Alberta has indicated it hopes to see the pipeline in service by 2033-34.
Less Regulatory Overlap and More Predictability
The agreement reinforces the “one project, one review” approach that ACA supported when it was first announced in April. Overlapping federal and provincial assessments have historically increased costs and delayed projects before they could begin. Reducing duplication creates more predictable approval timelines, which is what investors and contractors need to commit to major work.
Alberta and Canada have also reached an agreement on industrial carbon pricing. The price will hold at $95 per tonne through 2026, rising gradually to $130 per tonne by 2035. A 2030 price floor will help reduce volatility in Alberta’s TIER market. This stability supports long term planning and the investment decisions that drive construction activity.
Positive Steps Forward, With Real Hurdles Ahead
Indigenous consultation will be central to the project’s success. Governments have committed to early and meaningful engagement with First Nations and Métis communities, with co ownership and community benefit built into the framework. Getting this right takes time and cannot be rushed.
British Columbia is another variable. The pipeline crosses into BC, and while Ottawa and Edmonton have committed to ongoing engagement, regulatory and political alignment is not guaranteed.
The pipeline is also tied directly to the Oil Sands Alliance Pathways Project, the largest carbon capture, utilization and storage initiative in the world. Both governments have reaffirmed their support, projecting 16 million tonnes in annual emissions reductions, $16.5 billion in GDP and up to 43,000 jobs each year. However, Pathways still requires its own financing and regulatory approvals, with its first phase targeted for 2035. Two major projects. Two complex timelines. Both must advance for either to succeed.
What ACA Will Be Watching
Improving regulatory conditions is welcome progress. But ACA’s advocacy priorities extend beyond approvals. Members need predictable long term capital funding from governments to sustain construction activity between major project cycles. They need fair procurement and contracting practices that give Alberta firms a real opportunity to compete for the work these projects generate. They also need a workforce plan that scales with demand, because a pipeline and a carbon capture megaproject do not build themselves. The skilled trades pipeline must keep pace with the project pipeline.
ACA spent 2025 strengthening the relationships and influence needed to ensure Alberta’s construction sector has a voice in decisions like these. That work continues. We will stay engaged as this agreement moves into implementation and keep members informed on what it means for the work ahead.