Canadian Prime Minister Mark Carney declared Pacific Link, also known as the West Coast Oil Pipeline, a project of national interest at a joint press conference with Alberta Premier Danielle Smith in Fort McMurray.
Carney said that 90% of the oil produced in Alberta is currently sent to the United States, adding that the project would significantly reduce Canada’s energy dependence on that market. He said Pacific Link would enable an additional 1 million barrels of oil a day to be exported to growing markets in Asia, giving energy producers more customers and options.
Carney said the new export opportunities would mean higher prices for producers and more secure demand in the long term. Pacific Link was described as part of Canada’s goal of doubling its exports outside the United States over the next 10 years.
Indigenous communities to receive an ownership stake
Carney said Indigenous peoples had been involved in the project from the outset, adding that the Canadian and Alberta governments had agreed that the project contractor would offer Indigenous communities at least a 10% ownership stake in the pipeline.
The stake will be financed through loan guarantee programs for Indigenous peoples operated by Canada and Alberta. The project will also create contracting and employment opportunities for Indigenous communities.
Economic expectations
The Office of the Prime Minister said Pacific Link is expected to create 140,000 jobs across the country and contribute more than $20 billion annually to gross domestic product.
The Office of the Prime Minister said the project is projected to generate $100 billion in government revenue by 2060. The revenue is planned to support infrastructure and housing investments, as well as social programs including healthcare, dental care and childcare services.
