Federal-provincial agreement launches national-interest review for proposed pipeline while advancing one of the world’s largest carbon capture developments, creating major opportunities for Canada’s construction sector.
The federal and Alberta governments have taken the next steps toward delivering a proposed west coast oil pipeline and the Pathways Project carbon capture initiative – a package of energy infrastructure investments expected to generate significant work for Canada’s heavy civil, industrial and mechanical construction sectors.
Ottawa will refer Alberta’s proposal for a one-million-barrel-per-day pipeline to the Major Projects Office for consideration under the Building Canada Act, initiating consultations with Indigenous communities, provinces and territories. The proposed corridor would largely follow the existing Trans Mountain route while complying with the Oil Tanker Moratorium Act. Canada and Alberta will hold equal ownership stakes, with a meaningful equity position reserved for Indigenous partners. Pembina Pipeline Corporation will participate as a private-sector investor while Trans Mountain Corporation leads project development.
Construction pipeline expands
The governments also confirmed an agreement with the Oil Sands Alliance to advance the Pathways Project – a carbon capture and storage network expected to reduce emissions by 16 million tonnes annually. Combined, the two initiatives are projected to create approximately 175,000 jobs across Alberta, British Columbia and the rest of Canada, including up to 140,000 positions tied directly to pipeline construction and operations. The Pathways Project alone is expected to contribute more than $16 billion to Canada’s GDP while supporting more than 40,000 jobs annually.
“In the face of a global energy crisis, Canada controls our own energy and our future,” said Prime Minister Mark Carney. “Today, we are capitalizing on this opportunity by unlocking $200 billion of new investment across the country.”
Opportunities for contractors
For general contractors across the country, the announcement signals the potential for substantial procurement opportunities spanning pipeline construction, pumping stations, terminals, carbon capture facilities, electrical infrastructure and related civil works. The federal government said the Major Projects Office will streamline federal permitting while maintaining environmental standards and Indigenous consultation requirements.