Alberta, Pembina Chart a New Course to the Pacific

Alberta, Trans Mountain, and Pembina unveil a $43.7B pipeline deal aimed at moving crude to Asian markets by 2034

7 Jul 2026

Alberta produces more oil than it can sell to one customer. On July 2nd, the province tried to fix that. Alberta, Trans Mountain, and Pembina Pipeline announced a public-private partnership to build a new pipeline to British Columbia's coast, valued at up to $43.7bn. From there, tankers would carry Alberta crude to Asia. If built, it would rank among Canada's largest energy projects. Completion is planned for sometime between 2032 and 2034.

Pembina will hold a 10% stake during construction, with an option to double that once the pipeline opens. Such a structure lets private money share the risk while public bodies keep control. Trans Mountain already runs a pipeline along a similar route, so its experience should smooth the build.

Scott Burrows, Pembina's chief executive, called it "a once-in-a-generation opportunity to advance nation-building energy infrastructure that strengthens Canada's economy and expands access to global markets for Canadian energy." Bold words, though not unwarranted: few Canadian infrastructure deals carry this much strategic freight.

Diversifying export markets makes sense for Alberta's producers, who currently sell almost all their oil to America. Pacific access could mean better prices if Asian buyers pay more than American refiners do. Contractors and suppliers along the route stand to gain years of construction work worth tens of billions of dollars. Communities near the pipeline, meanwhile, will watch environmental reviews closely, since approval is not yet secured.

Whether the economics hold up by 2034 is another question. Global oil demand may look different in eight years, particularly if electric vehicles keep gaining ground. Pipelines are long-lived assets built for a world that may not last as long as they do. That risk does not make the deal foolish. It does mean betting $43.7bn on where Asian demand sits a decade from now takes some nerve.