Partners behind proposed West Coast oil pipeline revealed

Alberta's proposal for a new oil pipeline to the West Coast is being presented as a public-private partnership, though its initial structure heavily favors public ownership. Provincial and federal Crown corporations are set to hold 90% of the venture at the outset, with energy infrastructure company Pembina Pipeline Corp. participating as a minority partner.

The project envisions Trans Mountain Corp., a federal Crown corporation, as the developer, builder, and operator. This new pipeline would largely follow the established route of the existing Trans Mountain pipeline, which has transported Alberta crude oil to southwestern British Columbia since the 1950s. The existing pipeline's expansion, completed in spring 2024 at an estimated cost of $34.2 billion, has already begun delivering oil to Asian markets and has returned $2.2 billion to the Canadian government in interest and dividends.

Trans Mountain Corp. is a subsidiary of the Canada Development Investment Corp., accountable to Parliament. Plans are already in motion to further expand the Trans Mountain pipeline's capacity to nearly 1.2 million barrels per day through enhancements like additional pump stations and new pipe sections. The proposed new pipeline is seen as a way to integrate well with this existing legacy infrastructure, according to Trans Mountain CEO Mark Maki.

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The proposal before the major projects office would “integrate really well with our legacy pipeline,”