Trans Mountain’s pipeline system is moving 890,000 barrels per day from Alberta to British Columbia and hit full capacity for the first time in June, according to data reported by Oilprice.com.
Trans Mountain Expansion Adds 300,000 Barrels Per Day to Pacific Routes
The operator plans to add 90,000 barrels per day of capacity in the fourth quarter, followed by another 210,000 barrels per day by the end of 2028, according to Oilprice.com. These additions will take total pipeline capacity to roughly 1.19 million barrels per day. Most of the newly planned barrels are expected to head across the Pacific Ocean, utilizing the Westridge Marine Terminal in British Columbia.
Asian Refiners Drive Record Demand for Canadian Heavy Crude
China is currently the largest customer for the maritime shipments, while India, Japan, South Korea, and Vietnam are expected to buy more Canadian crude, according to Maki’s statements to Reuters. Thailand could soon join that list of buyers. Refiners across Asia frequently utilize complex processing configurations that handle Canadian heavy crude effectively.
Maki noted that barrels loaded in British Columbia do not have to pass through the Strait of Hormuz, providing buyers an alternative transit route.
Production Reaches Record Highs Alongside U.S. Export Shifts
Canada is producing enough oil to support the expanded pipeline infrastructure, with total output this year expected to surpass last year’s record of 5.3 million barrels per day, according to Oilprice.com. This production volume makes Canada the world’s fourth-largest oil producer.
For decades, the vast majority of Canadian crude exports went south to the United States. Producers currently ship roughly 4 million barrels per day to the U.S., where Midwest and Gulf Coast refineries process the heavy blend. While Canadian oil sands maintenance is expected to temporarily remove roughly 300,000 barrels per day of production in September with inventories unusually low, the Trans Mountain expansion gives producers additional global markets once those volumes return.
Frequently Asked Questions
What is the current capacity of the Trans Mountain pipeline?
The pipeline currently moves 890,000 barrels per day from Alberta to British Columbia, according to Oilprice.com.
Where do most tankers leaving the Westridge Marine Terminal go?
About two-thirds of the tankers leaving the terminal head to Asia, with China acting as the largest customer, according to Trans Mountain CEO Mark Maki.
How much will capacity increase by the end of 2028?
Trans Mountain plans to add 90,000 barrels per day in the fourth quarter and another 210,000 barrels per day by the end of 2028, raising total capacity to roughly 1.19 million barrels per day.
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