• Enbridge, South Bow, Trans Mountain to advise on Alberta's proposal
• Canada seeks to diversify oil exports away from US
• Past pipeline projects have had years of delay
• Indigenous group voices opposition to project

Oct 1 (Reuters) - Alberta will submit by spring of 2026 an application for a new crude oil pipeline for fast-track approval by the federal government, the province said on Wednesday, even though no private company has said it will build the project.

Canada's main oil-producing province said it will act as the formal proponent for the proposal, taking the lead on early planning and engineering work aimed at determining the route, size and cost of a pipeline.

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Alberta Premier Danielle Smith said her government has no intention of building or owning the pipeline, but expects one or more private sector proponents will come forward if a pipeline is successfully designated a project of national interest.

Prime Minister Mark Carney in August created a new federal office to fast-track the review and approval of natural resource projects, as Canada - which sends 90% of its oil exports to the U.S. - tries to diversify oil exports to help protect its economy against U.S. tariffs.

"I have every confidence that the ultimate construction will be done by the private sector," Smith told a press conference.

UP TO 1 MILLION BARRELS PER DAY

Alberta will invest C$14 million ($10.04 million) to develop a proposal for federal consideration and will work with Canadian pipeline companies Enbridge (ENB.TO) , opens new tab, South Bow (SOBO.TO) , opens new tab and government-owned Trans Mountain, which have agreed to provide advice and technical support, the government said.

None of the companies have committed to building the pipeline.

"This work is just getting under way. It will take time," Enbridge said in an emailed statement. "It's too early to delve into the details of what this pipeline might look like and who ultimately might be involved if it is advanced."

Neither Trans Mountain nor South Bow immediately responded to request for comment.

Alberta's government said the proposed pipeline could carry up to 1 million barrels per day of crude to British Columbia's northwest coast for export. Canada achieved record oil production in 2024 as the completion of the Trans Mountain pipeline expansion boosted oil companies' ability to get their product to market, but many analysts have suggested Trans Mountain will be full between 2027 and 2028.

Alex Pourbaix, executive chair of Canadian oil sands producer Cenovus Energy (CVE.TO) , opens new tab, said the pipeline proposal is feasible.

"It does not do my company or any company any good to materially grow production right now if we cannot get that production to global markets," Pourbaix told reporters.

PIPELINE OPPOSITION

In recent years, major Canadian oil pipelines have faced regulatory delay and legal challenges, leading to project cancellations and spiraling costs.

Pipeline companies and the Alberta government have repeatedly said significant federal legislative change - including removing a federal cap on oil and gas sector emissions and ending a ban on oil tankers off B.C.'s northern coast - is required before a private sector entity would consider proposing a new pipeline.

A spokesperson for Canada's Natural Resources Minister Tim Hodgson said the federal government is open to considering all projects, but proposals must include meaningful consultation with Indigenous groups, cooperation with all affected jurisdictions and alignment with Canada's climate objectives.

Smith said Alberta is already engaging with Indigenous communities and has an existing loan guarantee program that aims to help Indigenous nations invest in infrastructure projects as equity partners.

But some pipeline opponents are already speaking out.

“We must inform Premier Smith once again that there is no support from coastal First Nations for a pipeline and oil tankers project on coastal waters,” said Marilyn Slett, elected Chief Councillor of the Heiltsuk Tribal Council and President of the Coastal First Nations-Great Bear Initiative, an alliance of First Nations on Canada’s north Pacific coast.

($1 = 1.3940 Canadian dollars)

https://www.reuters.com/business/energy/alberta-plans-support-proposal-new-oil-pipeline-globe-mail-reports-2025-10-01/