Canada's Trans Mountain expansion set to channel most oil shipments to Asia
The Trans Mountain pipeline, which runs from Alberta to British Columbia's coast, reached full 890,000-barrel-per-day capacity in June. CEO Mark Maki said the upcoming expansion will add 90,000 barrels per day in the fourth quarter and a further 210,000 barrels per day by the end of 2028. With growing Asian demand, driven by disruptions in Middle-East supplies, the majority of ships leaving the west-coast terminal are expected to head to Asian markets.
Canada's sole coast-to-coast oil conduit, the Trans Mountain pipeline, has hit its full 890,000-barrel-per-day limit for the first time, according to recent data. Pipeline operator Trans Mountain's chief executive Mark Maki announced that an expansion will increase transport capacity by 90,000 barrels per day in the fourth quarter, followed by an additional 210,000 barrels per day by 2028, effectively raising total capacity by roughly one-third.
He noted that about two-thirds of vessels departing the British Columbia terminal already sail to Asia, and the expanded capacity will likely shift most of the flow toward Asian buyers. The surge in Asian interest comes as the US-Israeli conflict with Iran has curtailed Middle-East oil supplies. Canada, the world's fourth-largest oil producer, is on track to exceed last year's record output of 5.3 million barrels per day. China remains the top customer, with other nations such as Thailand, India, Japan, South Korea and Vietnam expected to increase purchases.
How this story developed
- Aug 22 Trump slaps 50% tariffs on Canadian imports, Canada vows matching retaliation
- Aug 26 President Trump posted a proposal to rename Lake Ontario.
- Aug 26 Retailers have begun removing U.S. wines and spirits from shelves as part of the boycott campaign.
- Aug 27 The United States began reviewing possible bans on Canadian imports under Section 338.
- Aug 28 Canada announced that its retaliatory duties will take effect on September 8.
- Aug 29 Canada set a 25% levy on certain American vehicles and matched the U.S. 50% level on steel and aluminium, also targeting plywood, screws and other timber items.
- Aug 31 Trump urged Canadian firms to relocate to the United States and labeled Canadian leadership the worst he has encountered.
- Aug 31 Mark Carney described the dispute as an attack and said Canada must respond as if at war.
- Sep 6 Canada announced it will re‑engage trade talks with the United States under industry safeguards.
- Sep 8 Reciprocal 50 percent tariffs took effect on both sides of the border.
- Sep 8 Carney announced a diversification agenda toward Europe and China and a new pipeline linking Alberta.
- Sep 9 U.S. administration announced bans on imports of Canadian dairy products, alcoholic beverages and motorcycles, set to take effect in three weeks.
- Sep 9 Prime Minister Carney publicly demanded an end to meme‑filled attacks amid the trade dispute.
- Sep 9 The United States added motor vehicles to the list of goods barred from import beginning at the end of the month.
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