Alberta will unveil its formal proposal for a new 1-million-barrel-per-day oil pipeline to Canada’s West Coast on Thursday, a spokesperson for Premier Danielle Smith confirmed Monday.

Submission of the proposal to the federal Major Projects Office was originally planned for July 1 under a May agreement between Smith and Prime Minister Mark Carney. However, the announcement was moved to July 2 due to the Canada Day holiday, according to Sam Blackett, the premier’s spokesperson.

The pipeline project serves as the centerpiece of a memorandum of understanding signed last fall by Smith and Carney, aimed at resetting the often-fractious relationship between Ottawa and the oil-rich province following years of tension under former prime minister Justin Trudeau.

Smith has argued that the project aligns with Carney’s stated goal to transform Canada into an “energy superpower” by diversifying export capacity to Asian markets, a move intensified by tariffs from U.S. President Donald Trump.

Smith also views the deal as a critical way to counter regional separatist sentiment by proving Alberta can successfully cooperate with the federal government.

Under the agreement, the federal government has committed to working toward designating the pipeline as a project in the “national interest” by October 2026, aiming for construction to begin by September 2027.

A federal official confirmed that this designation triggers an expedited approval process to reassure investors, and notably does not require a private-sector proponent to be attached to the project yet.

Finding a private-sector backer remains a significant hurdle. British Columbia Premier David Eby criticized the plan for its lack of commercial backing and expressed firm opposition to lifting the federal oil tanker moratorium protecting B.C.’s northwest coast.

Carney’s government has signaled a willingness to amend parts of that ban, while Smith has favored a northern route to maximize proximity to Asian markets.

Carney has also tied federal support for the pipeline to an agreement from major oilsands companies to construct a multi-billion-dollar carbon capture and storage network to mitigate the pipeline’s emissions.