Canada plans to expand Trans Mountain to supply oil to Asia — OilPrice
In Canada, the Trans Mountain pipeline reached full capacity for the first time in June, and its operator plans to increase it by another 300,000 barrels per day. Most of the additional volumes are expected to be supplied across the Pacific Ocean to Asian markets, OilPrice reports.
Pipeline expansion plans
Trans Mountain currently transports 890,000 barrels of oil per day from Alberta to British Columbia. In the fourth quarter, the operator plans to add 90,000 barrels per day, and by the end of 2028, another 210,000 barrels per day. Once these plans are implemented, the pipeline's total capacity will amount to approximately 1.19 million barrels per day.
Trans Mountain CEO Mark Maki told Reuters that about two-thirds of tankers currently leaving the Westridge Marine Terminal are headed to Asia. China is the largest buyer of Canadian oil. India, Japan, South Korea and Vietnam may also increase purchases, while Thailand could join this list.
New markets for Canadian oil
Heavy Canadian oil is suitable for processing at complex refineries common in Asia. An additional advantage for buyers is that oil loaded in British Columbia does not need to be transported through the Strait of Hormuz.
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For decades, the United States has remained Canada's main export destination: Canadian producers supply approximately 4 million barrels per day there. Refineries in the U.S. Midwest and on the Gulf Coast are adapted to process heavy oil from Alberta.
Oil production in Canada is expected to exceed last year's record of 5.3 million barrels per day this year. At the same time, maintenance at oil sands facilities in September may reduce production by approximately 300,000 barrels per day. Additional Pacific export capacity will give producers more sales destinations after these volumes are restored.
In July, Canada also announced plans to build another pipeline from Alberta to the Pacific coast, but the Trans Mountain expansion is expected to take place earlier.
