The federal and Alberta governments have announced plans to move ahead with a new oil pipeline that would carry up to one-million barrels of crude a day from Alberta to a new marine terminal on B.C.'s south coast.

The proposed route would largely follow the existing Trans Mountain corridor, crossing southern British Columbia to an export terminal where oil would be loaded onto tankers bound for Asian markets.

Ottawa has referred the proposal to the Major Projects Office, which will now begin consultations with Indigenous communities, provinces, and territories while considering whether to designate it a project of national interest under the Building Canada Act. A decision is expected by October 1st.

The federal government says it will continue working with British Columbia on the proposal and on the potential economic benefits for the province.

A new company led by Trans Mountain Corporation, the Alberta Petroleum Marketing Commission, and Pembina Pipeline would develop and operate the project.

The plan also includes opportunities for Indigenous ownership through an equity participation program.

Governments estimate construction could create as many as 140 thousand direct and indirect jobs across Canada at its peak, including about 70 thousand in British Columbia.

Officials say the project is intended to expand Canadian oil exports to Asian markets while supporting emissions reduction efforts through separate carbon capture initiatives.