Canada has chosen Germany’s ThyssenKrupp Marine Systems (TKMS) as the preferred bidder to build up to 12 conventionally powered submarines, Prime Minister Mark Carney announced on Monday in Halifax. The contract, described by Carney as the largest military procurement in Canadian history, will replace the navy’s ageing Victoria-class fleet and is structured to deliver the first four vessels by 2034. The decision was made public hours before Carney departed for a NATO summit in Ankara, where allies are expected to press members to translate higher defence budgets into concrete capability pledges.

According to Canadian officials, the Type 212CD submarine was selected over a rival bid from South Korea’s Hanwha Ocean because of its stealth characteristics, under-ice capability, and interoperability with NATO allies—Germany and Norway already operate the same platform. German Chancellor Friedrich Merz called the decision “a strong signal of transatlantic and European cooperation in the defence industry,” while Defence Minister Boris Pistorius said the three nations would build “the world’s largest and most modern conventional submarine fleet.” South Korean officials expressed disappointment, though Carney stressed that Ottawa would pursue cooperation with Seoul in other sectors. Viewed from Washington, the choice deepens Canada’s defence-industrial ties with Europe at a moment when the Trump administration has questioned NATO’s collective security commitment and imposed trade measures on Canadian exports.

In a separate but related development, the premiers of Alberta and Ontario announced a proposed route for the “Northern Shield” pipeline, which would carry up to 500,000 barrels of crude per day from Hardisty, Alberta, to Sarnia, Ontario, with a possible future extension to the Atlantic coast. The project revives the concept of the abandoned Energy East pipeline and is intended to open export routes beyond the US market. Alberta Premier Danielle Smith, who has set a target of doubling the province’s oil production within 15 years, said the corridor would signal that “Canada is once again open for business.” Ontario Premier Doug Ford pledged to complete a feasibility study this year. Analysts in Canada note that the proposal faces significant regulatory, financial, and Indigenous-consultation hurdles, and that no cost estimate or final route has been established.

Both initiatives reflect a broader reorientation of Canadian economic and security policy in response to what Carney called “a more dangerous and divided world.” The submarine procurement, accelerated by a new Defence Investment Agency, compresses a process that previously took nearly two decades into a few years. The pipeline plan, though at a conceptual stage, aligns with Ottawa’s push to diversify energy exports after US tariffs. At the NATO summit, Carney is expected to highlight Canada’s attainment of the 2 percent GDP defence spending target and a commitment to reach 5 percent by 2035. Contract negotiations with TKMS are to begin immediately, while the pipeline feasibility study is due by year’s end.