Economics of West Coast pipeline in focus ahead of Ottawa major project decision

An oil sands mining facility near Fort McKay, Alta. With the private sector largely unwilling to participate in the West Coast pipeline project, the fiscal risk should not be shifted to taxpayers, Ian Sanderson, a senior analyst with the Pembina Institute, says. ED JONES/Getty Images

Ottawa is set to decide on whether to designate a new pipeline from Alberta to the West Coast as a project of national importance amid concerns about oil producers’ appetite to fill the line and if long-term demand justifies the expenditure.

The decision is expected next week, and coincides with a major push by the federal government to diversify exports away from the United States and soothe tensions with Alberta, which is holding a separation referendum on Oct. 19.