What will it take to get the Pacific Link pipeline built?
The Growth Lens by Scotia Growth InstituteShow Notes
The proposed Pacific Link pipeline could significantly expand Canada’s ability to get its energy resources to global markets. But getting a project of this scale built will depend on how the country navigates questions around cost, construction, investment, Indigenous participation and execution.
In this episode of The Growth Lens by Scotia Growth Institute, presented in partnership with The Hub, Patrick Bryden speaks with Falice Chin, Alberta Bureau Chief for The Hub, about why Patrick sees the federal government’s decision to designate Pacific Link as a project of national interest as a “flashing green light”.
They discuss three potential scenarios for the project, including how construction timelines, inflation, labour shortages and other pressures could affect its ultimate cost. They also examine Indigenous participation and ownership, the commercial framework needed to support the pipeline, and the potential economic and strategic benefits of expanding Canada’s access to global energy markets.
The conversation also looks beyond Pacific Link to a much bigger question: whether Canada can turn its major-project ambitions into reality, while balancing regional interests and building projects effectively and responsibly.
Related content:
· Building Canada Initiatives: Pacific Link – A Flashing Green Light
· Building Canada Initiatives: Year One Progress Report — The Shovels Are Calling
Key Moments:
00:01:28: Why Pacific Link is a “flashing green light”00:04:50: Why Pacific Link is crucial for Canada’s economy00:07:04: Three scenarios for building Pacific Link 00:11:54: Managing inflation and major project cost pressures00:13:48: The challenge of “scaling the expenditure wall”00:16:24: Why Canada is in somewhat “uncharted waters” with so many projects00:18:36: The importance of building meaningful Indigenous partnerships and participation00:19:42: How the model is moving from agreements and more towards equity00:24:46: How might uncertainties in the bond markets impact the cost of borrowing?00:26:38: The economic and strategic benefits for Canada00:29:46: Discussing tolls and the commercial case for Pacific Link00:31:58: What Patrick will be watching for in the coming months
More from The Growth Lens by Scotia Growth Institute
As part of a push to spur new business investment in Canada, Prime Minister Mark Carney announced the new Productivity Mega Deduction at the Canada Investment Summit. This proposed new tax incentive would apply to more than 65% of capital assets and allow eligible businesses to immediately deduct qualifying investments, effectively lowering the after-tax cost of investing.
Canada has the resources and expertise to become an energy superpower. But realizing that potential will depend on whether the country can attract investment, build major projects and create the reliable energy system our economy will need in the years ahead.
Canada is at a pivotal moment in a time of rapid economic and geopolitical change, and the country’s next chapter will be determined by the path taken today.