Canada Strikes Deal to Start Building Oil Pipeline in 2027

Prime Minister Mark Carney, right, signs an MOU with Alberta Premier Danielle Smith in Calgary, Alberta, on Nov. 27.

Photographer: Jeff McIntosh/The Canadian Press/AP Photo

Canada and Alberta reached a carbon pricing deal that opens the way for construction of a new oil pipeline starting as early as 2027, while scaling back an expensive project to capture greenhouse gas emissions.

Prime Minister Mark Carney and Alberta Premier Danielle Smith announced the agreement on Friday. The deal builds on the memorandum of understanding they signed in November that outlined conditions for federal support of a crude pipeline to the west coast to serve Asian markets.