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Canada unveils new pipeline plan to cut US oil dependence

Al Mayadeen | July 3, 2026

Canada has moved forward with plans for a major new oil pipeline aimed at reducing its reliance on the United States and positioning itself as a supplier to Asian energy markets.

Alberta has formally submitted proposals to the federal Major Projects Office for a pipeline exceeding 1,000 kilometers, intended to carry as much as one million barrels of crude per day to the British Columbia coast, with construction slated to begin by September 2027.

Prime Minister Mark Carney described the initiative as a “once in a lifetime opportunity” for the country, announcing that the new line would largely trace the path of the existing Trans Mountain corridor.

The project would be built by Trans Mountain Corp, a federal Crown corporation, in partnership with Pembina Pipeline Corp.

Billions in investment

Carney tied the pipeline to a broader economic strategy, projecting that Thursday’s announcements would spur more than C$200 billion (US$141 billion) in fresh investment.

Alongside the pipeline, the plan includes nearly tripling Canada’s liquefied natural gas capacity through five new terminals over the next ten years, as well as a C$10 billion upgrade to the Port of Vancouver.

Alberta Premier Danielle Smith further called for the province’s oil production to double and for the pipeline to be operational by 2035.

Washington’s shadow looms over decision

The push comes as Canada seeks to loosen its economic dependence on Washington.

The US currently absorbs about three-quarters of Canadian exports and roughly 60 percent of its oil imports, some 4 million barrels a day, nearly all of it drawn from Alberta’s oil sands, among the largest crude reserves in the world.

Carney has vowed to double Canada’s non-US trade as President Donald Trump has threatened tariffs of up to 100 percent on Canadian goods and repeated calls for Canada to become the “51st state.”

Trump also declined this week to commit to a long-term renewal of the US-Mexico-Canada trade agreement he signed in his first term.

Environmental groups

Environmental groups and First Nations communities welcomed Carney’s decision to preserve an existing tanker ban along BC’s northern coast, with Heiltsuk Nation Chief Marilyn Slett calling it “a good day” for efforts to prevent oil spills.

Carney, a former UN climate envoy, has also acknowledged that the fossil-fuel-driven strategy will push Canada’s emissions higher, distancing his government from predecessor Justin Trudeau’s more restrictive approach to the oil sector.

Industry groups, meanwhile, argue that regulatory hurdles and an uncompetitive tax structure continue to discourage investment.

The plan also unfolds against a backdrop of internal strain, with Alberta’s separatist movement gaining traction and a referendum vote on independence set for October 19.

Trump threats fuel patriotism among Canadians

Trump’s confrontational posture toward Canada appears to be reshaping how Canadians see themselves. A new Politico poll found that 52 percent of Canadians now describe themselves as very proud of their nationality, up sharply from 34 percent in December 2024.

Analysts link the surge to Trump’s repeated threats to annex Canada and his tariff measures targeting Canadian exports, including a 25 percent tariff imposed by executive order in February 2025 that triggered retaliatory measures from Ottawa.

Those tariffs were later struck down by the US Supreme Court, which ruled that Trump’s use of the 1977 International Emergency Economic Powers Act to impose them was unconstitutional.

Even so, the poll suggests the rise in patriotic sentiment has not translated into a sense of national unity, with most respondents saying Canada remains internally divided.

July 3, 2026 Posted by | Economics | , | Comments Off on Canada unveils new pipeline plan to cut US oil dependence