Canada Plans New Oil Pipeline to Move 1 Million Barrels Per Day

Prime Minister Mark Carney said Thursday that Ottawa and Alberta will meet Friday to advance plans for a major new pipeline capable of moving at least 1 million barrels per day of Alberta crude to new markets. Carney also confirmed reports that his government will unveil a new industrial carbon pricing agreement with Alberta.

The meeting is intended to address long-running differences between the federal government and Canada's main oil-producing province. Canada holds the world's third-largest oil reserves but has faced repeated delays in expanding export infrastructure.

The latest pipeline proposal comes as global oil markets remain disrupted by the Iran war and reduced exports through the Strait of Hormuz. Canadian crude has become more attractive to buyers when Middle Eastern supplies are harder to obtain.

The new industrial carbon pricing agreement is expected to be released alongside the pipeline discussions. Officials described the paired announcements as an effort to resolve tensions between Ottawa and Alberta's energy sector. For years, disputes over environmental policy and resource development have strained relations between the federal government and the province.

The carbon pricing framework aims to provide greater certainty for industry while meeting federal climate targets. The pipeline project, if built, would increase Canada's capacity to export oil by sea or to new markets currently constrained by limited transportation routes.

No timeline for construction or route details were provided in the announcement.