Canada’s Carney has set up a pipeline deal to increase oil exports from the US beyond the US | Oil and Gas News

Ottawa says the future pipeline will reduce economic dependence on the US amid Donald Trump’s trade war.

Canadian Prime Minister Mark Carney has secured a funding deal with British Columbia to build a major oil pipeline, overcoming early opposition from the westernmost province.

The future pipeline is expected to carry 1 million barrels of oil per day – from the richest province of Alberta, through British Columbia, to the west coast of the country – allowing Canada new access to Asian markets and reducing its economic dependence on the United States.

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“It’s time to take action,” Carney said at a news conference with Danielle Smith, the premier of Alberta’s lean.

“The best way to build new pipelines is through existing ones, south through the Trans Mountain range, to our Pacific Coast, the route to the world’s fastest growing markets,” Carney said.

Carney has set Canada’s goal to increase exports to non-US markets over the next decade and said the pipeline could reduce the cost of current exports to the US market.

The route will largely follow the route previously traversed by the Trans Mountain pipeline.

It runs from Bruderheim, northeast of Edmonton, Alberta, to the south coast of British Columbia, delivering more than 1 million barrels per day to tankers and then to Asian markets.

Smith said the Alberta government is partnering with Calgary-based Trans Mountain Corporation and Pembina Pipeline on what it calls the West Coast pipeline.

“The world is calling on Canada to step up and provide the sustainable, democratic and credible energy that countries around the world want,” Smith said.

Smith wants Alberta to increase oil production to 8 million bpd over the next 10 to 15 years.

Smith has long complained that Carney’s predecessor, Justin Trudeau, blocked the region’s energy industry and fueled separatist sentiment.

Alberta is holding a public vote this fall to hold a referendum on leaving Canada.

British Columbia and First Nations are opposing the pipeline through northern British Columbia.

“The ban on submarines will remain in place. We will be protecting the north coast of British Columbia,” Carney said earlier in Vancouver.

Carney also said Thursday that he will pay British Columbia for environmental risks if the pipeline is built in the province’s south.

The previous memorandum of understanding between Ottawa and Alberta included changes to the oil tanker ban in some parts of the British coast, but British Prime Minister David Eby said on Thursday that he promised to maintain the northern tanker ban, to protect the northern coast.

“It’s ensuring that the northern tanker ban remains in place,” Eby said.

Trudeau has opposed the pipeline that could pass through northern British Columbia and the Great Bear Rainforest.

He endorsed one pipeline from Alberta to the southern coast of British Columbia, the Trans Mountain pipeline, but rejected the Northern Gateway project amid environmental opponents and tribal communities.

Since the Trans Mountain expansion opens on the southern coast of British Columbia in 2024, about two-thirds to three-quarters of the oil exported from Canada’s Pacific Coast will go to Asia, helping Canada reduce its dependence on the US market.

Opening more international markets is one of Canada’s ways to deal with the trade war launched by US President Donald Trump.

Since his second term in office, Mr. Trump has imposed various tariffs through the tariffs on electronics and goods from Canada and other countries.