The Canadian government has unveiled plans to advance a new 1 million-barrel-a-day oil pipeline to the West Coast, a project resulting from a "grand bargain" that balances fossil fuel expansion with strict environmental commitments.

Prime Minister Mark Carney announced Thursday that state-owned Trans Mountain Corp. will build the proposed 1,200-kilometre (746-mile) conduit. The project is backed by the federal and Alberta governments, with Pembina Pipeline Corp. potentially taking a stake.

The pipeline will carry bitumen from Alberta’s oil sands to a yet-to-be-built marine terminal at Roberts Bank, south of Vancouver.

By following the existing Trans Mountain route completed in 2024, officials estimate construction time will be cut by two to three years.

The southern terminal will also accommodate Very Large Crude Carriers capable of transporting 2 million barrels of oil, a significant upgrade over existing facilities.

To secure the infrastructure, the federal government compromised on "hard choices" to appease regional and environmental interests, Energy Minister Tim Hodgson said.

In exchange for the pipeline, the federal and Alberta governments reached a preliminary agreement with the Oil Sands Alliance—a group of five major energy companies, including Canadian Natural Resources Ltd. and Imperial Oil Ltd.—to build Pathways, the world’s largest carbon capture facility.

Scheduled to start around 2032, Pathways aims to trap oil sands emissions and inject them underground, eliminating atmospheric emissions equivalent to 5 million cars.

The deal also resolved political opposition from British Columbia Premier David Eby, who previously fought to block similar projects. The federal government won Eby's support by securing billions in federal aid and ensuring the pipeline avoids BC's northern coast.

Major hurdles remain, including finalizing fiscal frameworks and consulting between 90 and 125 Indigenous groups whose territories cross the route.

Representatives from the Tsawwassen First Nation and Musqueam Indian Band stated they are open to discussions but require meaningful consultation before taking an official position or negotiating equity ownership.