Canada's Crude Exports to Asia Set to Surge as Trans Mountain Pipeline Expands
Canada is rapidly increasing its crude oil exports to Asia, driven by growing demand and supply disruptions from the Middle East.
The country's Trans Mountain pipeline, which connects Alberta to British Columbia's west coast, has hit full capacity for the first time in June, with 890,000 barrels per day being transported. The pipeline is expected to expand its capacity by a third by the end of 2028, adding 90,000 bpd in the fourth quarter and another 210,000 bpd by 2028.
According to Mark Maki, CEO of Trans Mountain, Asia, led by China, will buy around 70% of Canada's crude oil exports. China will remain the country's single largest customer, as heavy Canadian oil is an ideal feedstock for petrochemicals.
New countries are expected to become customers, including Thailand, and existing ones like India, Japan, South Korea, and Vietnam will increase their purchases of Canadian oil. The US-Israeli war on Iran has disrupted supplies from the Middle East, further driving demand for Canadian crude in Asia.