Canada has advanced plans to construct an oil pipeline aimed at supplying Asian markets with up to one million barrels of crude oil per day, as the government seeks to reduce its heavy reliance on the United States. Prime Minister Mark Carney announced that Alberta has submitted proposals to the Major Projects Office to commence construction on a pipeline exceeding 1,000 kilometers in length, reaching the western coast of British Columbia by September 2027.

Carney described the initiative as a transformative opportunity for Canada’s energy sector, emphasizing its strategic importance. The pipeline is set to follow a route parallel to the existing Trans Mountain corridor, providing a pipeline link to the Pacific coast. The project will be overseen by the Trans Mountain Corporation, a federal Crown corporation, in partnership with Pembina Pipeline Corporation. Together, they aim to establish a gateway to rapidly growing economies in Asia.

The federal government projects that this pipeline, alongside broader efforts to expand Canada’s energy exports, could attract over C$200 billion (approximately US$141 billion) in new direct investments. Carney also outlined plans to more than triple liquefied natural gas (LNG) production through the development of five new terminals over the next decade. Additionally, Ottawa intends to invest C$10 billion to upgrade the port facilities in Vancouver to support increased trade.

Alberta Premier Danielle Smith supports the pipeline, envisioning a doubling of the province’s oil output by 2035. She characterized the pipeline as a project of national interest that will connect Alberta’s oil resources to global markets and boost the country’s economic prospects over the long term.

Currently, Canada exports nearly all of its oil—roughly 4 million barrels daily—to the United States, which accounts for about 60 percent of U.S. oil imports. This trade is a key component of Canada’s broader economic relationship with its southern neighbor, with three-quarters of Canadian goods and services sold to the U.S. However, recent political tensions and trade uncertainties have heightened Ottawa’s push to diversify export markets.

Prime Minister Carney has committed to doubling Canada’s trade volume outside the U.S., partly in response to President Donald Trump’s threats of steep tariffs and other protectionist policies. Trump also recently declined to authorize the long-term renewal of the US-Mexico-Canada Agreement, which has added to trade uncertainties.

Canada’s oil sands, primarily located in northern Alberta, contain the world’s third-largest oil reserves but are viewed as environmentally contentious due to the carbon-intensive extraction and processing involved. Meanwhile, Alberta faces internal political challenges, including a separatist movement that is organizing a public vote on holding a referendum on independence scheduled for October 19. This development adds complexity to the province’s role in Canada’s energy strategy and national unity discussions.