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Alberta submits proposal for new oil pipeline

Alberta announced Wednesday that it would submit a fast-track application to the federal government by the spring of 2026 for a new pipeline carrying crude oil, even if a private firm is not involved in the construction.

The main oil producing province in Canada said that it would act as the official proponent of the proposal. It will take the lead on early planning, engineering and design work to determine the route, cost and size of a pipe.

Alberta's government has said that the proposed pipeline can transport up to 1,000,000 barrels of crude oil per day to British Columbia's Northwest Coast for export.

It will spend C$14,000,000 ($10.04 million), to create a credible proposal that can be considered by the federal government. The company will also work with Canadian pipelines companies Enbridge, South Bow, and government-owned

Trans Mountain

Alberta has announced that. They have also agreed to provide technical assistance and advice.

The companies have not committed to build the pipeline, nor have they invested in such a venture. Deputy Alberta Energy Minister Larry Kaumeyer said Wednesday that the government does not intend to own or construct a pipeline.

Requests for comments were not immediately responded to by the companies.

The goal of the Alberta government, according to Kaumeyer, is to get the project to the starting line. He added that despite the growing Canadian oil production no private company would be willing to risk a pipeline proposal.

The Canadian oil pipeline industry has faced regulatory delays and legal challenges for years. This has led to the cancellation of some projects, and increased costs for others.

Trans Mountain expansion

The first one was opened in 2008.

Canada, which exports 90% of oil to the U.S., is trying to diversify its oil exports partly to protect its economy from tariffs.

The Canadian government, under the leadership of Prime Minister Mark Carney, aims to speed up construction on natural resource projects. In August, a new organization was created.

Federal office

Designed to expedite the review and approval process for projects like mines and pipelines.

Kaumeyer explained that if a pipeline project were approved for fast-tracking then a partner from the private sector would be likely to step up and take the project over from the Alberta government.

He said: "We're confident that private capital will come to build this pipe." Pipeline companies say they have been urging significant changes to federal legislation, including the lifting of the federal cap on emissions in the oil and gas industry as well as removing the ban on oil tankers near B.C. Before a private entity will consider a new pipeline, it must first be approved by the government.

Kaumeyer stated that the federal government was aware of the Alberta pipeline proposal, and that Alberta and Canada were in "ongoing talks" regarding the issue.

Carney's office didn't immediately respond to an inquiry for comment. (1 Canadian dollar = 1.3940 dollars) (Reporting from Amanda Stephenson, Calgary; and Devika Nair, Bengaluru. Editing by Margueritachoy and Cynthia Osterman).

(source: Reuters)