Asia Dominance: Canada's Oil Exports Set to Reach New Heights
The Trans Mountain pipeline from Alberta to British Columbia's west coast is expected to play a crucial role in Canada's growing oil exports to Asia. According to Mark Maki, CEO of the pipeline operator Trans Mountain, Asia, led by China, will account for 70% of Canadian crude oil exports after the pipeline expansion by the end of 2028.
The demand for Canadian crude has increased due to disruptions in supplies from the Middle East caused by the U.S.-Israeli war on Iran. The 890,000-barrel-per-day Trans Mountain pipeline hit full capacity for the first time in June and is set to expand its transport capacity by a third by the end of 2028.
The expansion will add 90,000 bpd transport capacity in the fourth quarter, with another 210,000 bpd added by the end of 2028. Maki expects that most of this expansion will go to Asia, where Canada's oil output is set to exceed last year's record of 5.3 million barrels per day.
China will remain Canada's single largest customer for oil exports, as heavy Canadian oil is an ideal feedstock for petrochemicals. Maki also expects new countries such as Thailand to become customers, with India, Japan, South Korea, and Vietnam increasing their purchases of Canadian oil.