Canada plans West Coast oil pipeline, LNG push to cut U.S. dependence

Mark Carney and Alberta Premier Danielle Smith signed a federal-Alberta energy agreement in Calgary on May 15, putting a West Coast oil pipeline and a wider LNG buildout at the center of Canada’s effort to reduce reliance on the United States. The plan keeps British Columbia’s tanker ban in place while creating a path to Asian markets, with government timelines pointing to pipeline construction as early as September 2027.

The LNG side of the strategy already has a working example in Kitimat. Canada became an LNG exporter in June 2025, when LNG Canada loaded its first cargo and began operations as the country’s first large-scale LNG export facility and the first major LNG terminal on North America’s Pacific Coast. Shipping from British Columbia to Asia can take about 10 days, roughly half the time needed for routes through the Gulf of Mexico and the Panama Canal. LNG Canada Phase 2 in Kitimat was among the projects Carney identified for fast-tracked approval.

The broader package is not limited to oil and gas. Carney’s first five nation-building projects were expected to add about C$60 billion to the economy, and he later added seven more initiatives for accelerated approval, including multibillion-dollar energy and natural resources proposals. More westbound infrastructure, from LNG terminals to ports and mines, could give Canada a more durable trade position if U.S. demand weakens or Washington turns more protectionist.

Alberta’s government has welcomed the pipeline and the energy expansion as a route to new markets. Environmental groups have sharply criticized the push, arguing that more fossil-fuel infrastructure cuts against Canada’s climate goals. The tanker ban was created to protect the coast, and any move to alter it faces resistance from coastal communities and conservation groups.