Canada's Pipeline Boom: New Projects Could Boost Capacity by Nearly Three Million Barrels Per Day

Canada is preparing for another oil production growth and seeking multiple export routes. The country's pipeline development has entered a new phase, with several projects underway that could increase capacity by nearly three million barrels per day.

The Trans Mountain Expansion, which entered service in May 2024, has already made a significant impact on the market. Statistics Canada reported that Canadian crude exports to countries other than the United States increased nearly 60% in 2024, reaching a record 10.6 million cubic meters.

One of the most ambitious projects is the new West Coast Oil Pipeline, which would transport one million barrels per day from Alberta to a deepwater marine terminal in southern British Columbia. The pipeline is being structured around a new company owned by Trans Mountain Corporation and the Alberta Petroleum Marketing Commission, with Pembina Pipeline Corporation holding a 10% economic interest during construction.

Trans Mountain is also working on lower-cost ways to increase its existing system's capacity through optimizations. This would add approximately 300,000 barrels per day without constructing another full-length pipeline, raising total system capacity to about 1.19 million barrels per day by the end of 2028.