Canada's Oil Exports to Asia Face Refinery Infrastructure Hurdles
Canada is increasing its oil exports to Asia as Middle East conflicts disrupt energy flows. The expansion of Canada's Trans Mountain pipeline in 2024 enabled this diversification, with non-US crude exports reaching C$10 billion (US$7.2 billion) in 2025, averaging around 430,000 barrels per day.
The majority of Canadian oil exported to Asia went to China, but only a small number arrived in South-east Asian countries due to the region's refineries being tailored for medium sour Middle Eastern crude oil.
Canadian crude is heavy sour and requires specialized refining capabilities that much of South-east Asia lacks. Upgrading existing sites or building new ones would be necessary to process this type of crude, making it a costly endeavor.
However, energy security concerns are driving conversations around feedstock diversification, with some experts noting the potential for Asean countries to build new refineries tailored for Canadian crude.