Canada's Oil Exports Shift East as Trans Mountain Pipeline Reaches Full Capacity

Canada's oil industry is shifting its focus to Asia as the Trans Mountain pipeline reaches full capacity for the first time in June, moving 890,000 barrels per day from Alberta to British Columbia. The operator plans to add 90,000 bpd by the end of this year and another 210,000 bpd by the end of 2028, taking total capacity to roughly 1.19 million bpd.

About two-thirds of tankers leaving the Westridge Marine Terminal currently head to Asia, with China being the largest customer, followed by India, Japan, South Korea, and Vietnam. Thailand may also join this list as Canadian heavy crude works well in Asian refineries, which are often more complex than those found in the US.

The Iran war has added another reason for Asian countries to buy Canadian oil as it does not have to pass through the Strait of Hormuz, making it a safer option. Canada is producing enough oil to make use of the extra pipeline space, with output expected to exceed last year's record 5.3 million bpd, making Canada the world's fourth-largest producer.