Canada Expands Trans Mountain Pipeline Capacity for Asian Markets

Canada's Trans Mountain pipeline has reached full capacity for the first time in June, transporting 890,000 barrels of oil per day from Alberta to British Columbia. The operator plans to increase this capacity by another 300,000 barrels per day.

The additional volumes are expected to be supplied across the Pacific Ocean to Asian markets, with China being the largest buyer of Canadian oil. India, Japan, South Korea, and Vietnam may also increase their purchases, while Thailand could join this list in the future.

Trans Mountain CEO Mark Maki told Reuters that about two-thirds of tankers currently leaving the Westridge Marine Terminal are headed to Asia. This is due to the suitability of heavy Canadian oil for processing at complex refineries common in Asia, as well as the advantage of not needing to transport oil through the Strait of Hormuz.

The pipeline expansion plans include adding 90,000 barrels per day in the fourth quarter and another 210,000 barrels per day by the end of 2028. Once these plans are implemented, the pipeline's total capacity will amount to approximately 1.19 million barrels per day.