Canada Faces Pipeline Capacity Crunch as Oil Output Ramps Up

Alberta aims to double its oil production, but a pressing question for the industry and politicians is where that oil will go.

The province's energy sector has been setting records with existing pipeline systems in Western Canada filling up less than two years after the Trans Mountain expansion project was completed.

Trans Mountain Corp. recently announced an open season to gauge shipper interest in boosting contracted capacity available on its network, while Enbridge is expanding its Mainline system by up to 400,000 barrels per day around 2028.

However, analysts expect more pipeline capacity will be required, with western Canadian crude supply for export averaging 4.6 million barrels per day last year and expected to top 5.2 million bpd by 2030.