Canada's Oil Exports Set for Asia-Driven Boom by 2028
The Trans Mountain pipeline, which transports oil from Alberta to British Columbia's west coast, is set to expand its capacity by one-third by the end of 2028. This expansion will make Asia, led by China, a major buyer of Canadian crude oil exports, with an expected 70% market share.
The increased demand for Canadian oil in Asia comes as supplies from the Middle East have been disrupted due to the U.S.-Israeli war on Iran. As a result, Canada's only pipeline providing access to the continent has hit full capacity for the first time in June.
Mark Maki, CEO of Trans Mountain, expects that most of the expanded pipeline capacity will be used to ship oil to Asia. China is already Canada's single largest customer, and Maki notes that heavy Canadian oil is an ideal feedstock for petrochemicals.