Prime Minister Mark Carney signed a major pipeline agreement with Alberta on Friday, greenlighting a massive infrastructure push to move over 1 million barrels of Canadian oil per day to the Pacific coast.

The deal aims to establish a direct export pipeline route to key Asian energy markets, including Japan, South Korea, China, and India. It marks a fundamental shift in federal energy policy, with Ottawa explicitly embracing Alberta’s long-standing campaign to expand oil production and export capacity.

The strategic pivot follows economic pressures stemming from U.S. President Donald Trump’s trade war, which exposed the vulnerabilities of Canada’s heavy economic reliance on its southern neighbor.

Carney framed the agreement as a vital step toward national unity amid a separatist movement in Alberta. 

For a decade, the oil-rich province has accused the federal government of stifling resource development through strict climate rules and energy regulations.

"Today is also about building trust in a Canada that works, a Canada rooted in cooperative federalism, where we build together pragmatically and ambitiously to achieve our shared ambitions," Carney said.

Alberta Premier Danielle Smith, who met with Carney in Calgary to sign the pact, has also sought to cool the local separatist movement pushing for an independence referendum. 

Smith blamed "10 years of bad Liberal policy" under former Prime Minister Justin Trudeau for fueling western alienation, but she reaffirmed her commitment to the federation following the pipeline breakthrough.

"I support sovereignty within a united Canada," Smith said. "That means Alberta should stay a part of Canada and continue to pursue and support and enshrine our constitutionally invested rights."

The deal comes days after Canada’s Prime Minister proposed an overhaul of the federal energy infrastructure permitting procedures to fast-track federal pipeline approvals. 

Since taking office more than a year ago, Carney has faced significant political headwinds over his pro-pipeline stance. The prime minister has had to balance internal party divisions while reassuring international investors of Canada's commitment to energy infrastructure. 

The internal friction peaked in November when a member of Carney's Cabinet resigned in protest over the pipeline push.