A proposed pipeline from Alberta to the West Coast has been designated a project of national interest, Prime Minister Mark Carney said Thursday, citing the conduit’s economic benefits and how it can boost Canada’s share of global energy markets.

The next step is a federal review process, including consultations with stakeholders about the project’s ownership, as well as Indigenous rights and environmental protections. Ottawa’s Major Projects Office will lead that process with support from the Canada Energy Regulator, federal officials said Thursday. The MPO aims to finalize conditions of the project by Sept. 1, 2027, so the pipeline can be under construction by 2032.

Canada and Alberta would share equal ownership of the newly named Pacific Link line. Indigenous communities would be offered a minimum of 10-per-cent ownership interest through federal and provincial Indigenous loan guarantee programs, officials said.

The pipeline is a key part of Mr. Carney’s suite of policy changes that aim to reset federal relations with Alberta and diversify Canadian exports away from the United States. It would carry one million barrels of oil a day to the coast, largely following the route of the Trans Mountain system, allowing Alberta oil to access more international markets and garner higher prices.

The expected price tag is between $35.2-billion and $43.7-billion.