Key facts
- The Trans Mountain pipeline reached its full capacity of 890,000 barrels per day in June.
- Planned expansions will increase total capacity to approximately 1.19 million barrels per day by the end of 2028.
- About two-thirds of tankers departing the Westridge Marine Terminal are destined for Asia.
- China is the primary customer, with India, Japan, South Korea, and Vietnam increasing their purchases.
- Canada is projected to be the world's fourth-largest oil producer this year, exceeding last year's record output.
Canada's Trans Mountain pipeline has achieved full operational capacity for the first time, signaling a significant shift in the nation's oil export strategy towards Asian markets. The pipeline, which currently moves 890,000 barrels per day (bpd) from Alberta to British Columbia, is undergoing expansions that will boost its total capacity to approximately 1.19 million bpd by the end of 2028.
Trans Mountain CEO Mark Maki stated that roughly two-thirds of the tankers leaving the Westridge Marine Terminal are now bound for Asia. China stands as the largest customer, with India, Japan, South Korea, and Vietnam anticipated to increase their purchases of Canadian crude. The suitability of Canadian heavy crude for the complex refineries prevalent across Asia, coupled with geopolitical considerations such as avoiding the Strait of Hormuz amid Middle East tensions, are driving this pivot.
Canada's oil production is robust, with output this year expected to surpass last year's record of 5.3 million bpd, positioning the country as the world's fourth-largest producer. While the United States remains a primary destination for Canadian crude, the expanded Trans Mountain capacity opens avenues for additional international buyers. Despite an anticipated temporary reduction in production due to oil sands maintenance in September and currently low inventories, the increased Pacific export capacity provides producers with greater market access as barrels return.
This development follows Canada's announcement in July of plans for another Alberta-to-Pacific pipeline, with the Trans Mountain expansion offering a more immediate solution for increased export capacity.