Canada, Alberta jointly propose 3,300-km oil pipeline to cut U.S. energy dependence

The governments of Alberta and Canada have revived a previously scrapped pipeline plan, proposing a 3,300-kilometre line from Hardisty, Alberta, to Sarnia, Ontario. The pipeline would carry up to 500,000 barrels per day (bpd), with capacity expandable to 800,000 bpd.

Strategic Rationale

The proposed pipeline aims to connect western and eastern Canada as the oil-rich nation seeks greater self-reliance and reduced energy dependence on the United States. Currently, oil is transported from Alberta to Ontario via U.S. territory, and the state of Michigan has previously threatened to shut down that route, posing a risk to Canada's energy security.

Alberta holds vast oil reserves, totalling approximately 158.9 billion barrels. The United States remains the primary importer of Canadian crude, which accounted for 63.4% of U.S. crude imports in 2025.

Project Details

Alberta Premier Danielle Smith outlined the proposed route: starting in Hardisty, Alberta, the pipeline would traverse Saskatchewan, Manitoba, and northern Ontario before heading south to Sarnia, Ontario. The line would initially transport up to 500,000 bpd, with future potential to reach 800,000 bpd. Smith noted that the pipeline could eventually be extended to Canada's Atlantic coast, opening new export routes to Europe.

Ontario Energy Minister Stephen Lecce emphasized the need for a sovereign route, stating: "50 per cent of oil imports into Ontario run through a pipeline that cuts through the U.S. It is clear we need a sovereign pipeline route that connects Alberta crude oil to Sarnia — the country's largest refinery and petrochemical hub."

Government Support and Investment

Prime Minister Mark Carney announced C$150 billion in investments for Alberta and British Columbia during a July visit to Alberta. The investments include expansion of a port in Vancouver and development of new power infrastructure for a liquefied natural gas (LNG) terminal. Carney also outlined plans for the new oil pipeline.

Carney stated that Canada and Alberta would be "equal partners" in the project, with "a meaningful ownership stake for Indigenous communities." Consultations are expected to commence immediately. He also expressed confidence that the project would support "substantial" methane reductions and reassured the public that a longstanding federal ban on loading or unloading oil from ships on British Columbia's north coast would remain in place.

Historical Context and Opposition

The original pipeline project involved developing a transport link across northern Canada but was abandoned nearly a decade ago due to widespread opposition from Indigenous communities and leaders, largely over concerns about overturning the tanker-loading ban. Canada's Culture Minister and former Environment Minister Steven Guilbeault announced he would leave the cabinet if the original pipeline proceeded. Oil firms were also reluctant to support the previous plan due to fears of staunch opposition from environmentalists and Indigenous groups.

Current Reactions

British Columbia Premier David Eby indicated he would not oppose the pipeline, stating that the new agreement includes robust safeguards and that residents would be "fairly compensated for the environmental risks we would take on any new pipeline project."

Coastal First Nations President Marilyn Slett welcomed the news that the tanker ban would remain in place, stating: "British Columbians, Canadians and the First Nations who call this place home want this region to remain protected. There is no technology that can clean up an oil spill at sea, and a single oil spill could destroy our way of life."

Environmental Concerns

Environmentalists have criticized the plan due to climate change concerns and past failures of fossil fuel projects. The expansion of the Trans Mountain pipeline resulted in significant cost overruns, and while it has become a strategically important piece of infrastructure, it remains uncertain whether taxpayers will ever recover the money invested.

Broader Context

In recent years, as Canada's federal government has favoured plans for a green transition, thereby hindering oil industry expansion, a minority of Alberta residents have called for a referendum on potential separation from Canada. The revived pipeline proposal reflects a long-discussed idea that was eventually abandoned almost a decade ago.