The federal and Alberta governments have advanced a climate and energy agreement that could see construction on an oil pipeline to the West Coast start as early as September 2027.

Prime Minister Mark Carney and Alberta Premier Danielle Smith made the announcement on Friday in Calgary. The agreement, which builds on the memorandum of understanding that the Alberta and federal governments signed in November, includes a plan to increase Alberta’s industrial carbon price, though at a slower pace than previously projected.

The agreement would see Alberta submit a proposal for a new oil pipeline to the major projects office by July 1, and the federal government designate it as a project of national interest by Oct. 1.