{"id":534233,"date":"2026-03-13T18:31:09","date_gmt":"2026-03-13T18:31:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/534233\/"},"modified":"2026-03-13T18:31:09","modified_gmt":"2026-03-13T18:31:09","slug":"reliable-west-coast-shipments-of-alberta-heavy-oil-emerge-as-lifeline-for-asian-refiners-hormuz-disruption-underscores-the-strategic-value-of-canadas-stable-oil-supply","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/534233\/","title":{"rendered":"Reliable West Coast shipments of Alberta heavy oil emerge as lifeline for Asian refiners \u2013 Hormuz disruption underscores the strategic value of Canada\u2019s stable oil supply"},"content":{"rendered":"

The Port of Vancouver has emerged as a\u00a0lifeline for Asian oil refiners<\/a>\u00a0amid disruption of the vital shipping route through the Strait of Hormuz, according to ATB Cormark Capital Markets.<\/p>\n

Tankers calling at the port\u2019s Westridge Marine Terminal now have access to an expanded, reliable supply of oil from Alberta, thanks to the Trans Mountain pipeline.<\/p>\n

Not only do these barrels have clear sailing to Asian ports, analysts say they\u2019re just the type of oil Asian refiners are increasingly looking for.<\/p>\n

About half<\/a>\u00a0the oil flowing through the pipeline is considered \u201cheavy,\u201d one of the grades most affected by the Strait of Hormuz closure, ATB said.<\/p>\n

\u201cCanadian heavy oil could become a premium global asset,\u201d managing director of institutional equity research Patrick O\u2019Rourke wrote on Mar. 2.<\/p>\n

\"\"<\/a><\/p>\n

SAGD oil sands project in northern Alberta. Photo courtesy Cenovus Energy<\/a><\/p>\n

Stability in a volatile market<\/p>\n

It\u2019s a sentiment that was building before the new conflict in the Middle East.<\/p>\n

\u201cBeyond price, Canada offers something increasingly valuable \u2014 a large, stable and reliable supply of heavy crude,\u201d Studio.Energy director of research Carmen Velasquez wrote\u00a0in November<\/a>.<\/p>\n

\u201cAt a time when geopolitical risk is reshaping energy trade flows\u2026this reliability is becoming a strategic differentiator, not just a commercial one.\u201d<\/p>\n

Why heavy oil matters<\/p>\n

Exported mainly from Alberta\u2019s oil sands, heavy oil is one of Canada\u2019s biggest energy assets.<\/p>\n

Thick and gooey, it requires diluent for transportation and complex processing to produce gasoline, jet fuel and petrochemicals used in everyday items.<\/p>\n

The large-scale petrochemical refineries in Asia that are driving oil demand growth can pair well with Alberta\u2019s heavy oil, Velasquez said.<\/p>\n

\u201cIn recent years, [China] has invested heavily in new mega-refineries and upgraded existing ones to handle heavier and more complex crude slates,\u201d she said.<\/p>\n

\"\"<\/a><\/p>\n

Zhejiang Petrochemical Complex in in Zhejiang, China. Photo courtesy Zhejiang Petroleum and Chemical Co.<\/p>\n

Asia\u2019s growing appetite<\/p>\n

China is Asia\u2019s \u201cheavy oil hub,\u201d RBC director of energy policy Shaz Merwat wrote in a November\u00a0research note<\/a>.<\/p>\n

\u201cChina is sharply pivoting into petrochemicals, aiming to take Japanese and Korean market share,\u201d Merwat said.<\/p>\n

\u201cIndia, too, is expected to see oil imports grow 1.5 million barrels per day by 2035 as both countries seek steady supplies of heavy and sour crude,\u201d he said.<\/p>\n

\u201cToday, that supply originates from the Middle East, Russia and Venezuela, creating an opening for a stable, Western entrant.\u201d<\/p>\n

Canadian barrels gaining a foothold<\/p>\n

Canadian heavy oil has started building a footprint in Asia thanks to the Trans Mountain expansion and \u201cre-exports\u201d \u2014 Western Canadian barrels shipped from terminals on the U.S. Gulf Coast.<\/p>\n

Both China and India have purchased Canadian oil from Trans Mountain since the expanded pipeline went into service in May 2024, the company reports.<\/p>\n

\"\"<\/a><\/p>\n

Courtesy Trans Mountain Corporation<\/p>\n

While China leads overseas sales from Trans Mountain, India is a\u00a0regular buyer<\/a>\u00a0of U.S. Gulf Coast re-exports, according to RBN Energy.<\/p>\n

\"\"<\/a><\/p>\n

Courtesy RBN Energy<\/p>\n

Demand keeps climbing<\/p>\n

\u201cBesides ongoing efforts to expand the Chinese customer base, India and Southeast Asia are the most promising growth markets for Canadian crude,\u201d Studio.Energy\u2019s Velasquez said.<\/p>\n

\u201cAnd this is no small opportunity.\u201d<\/p>\n

The International Energy Agency projects oil demand in the Asia-Pacific region will rise to\u00a041 million barrels per day<\/a>\u00a0by 2050, up from 35 million barrels per day in 2024.<\/p>\n

This article was originally produced by the Canadian Energy Centre.<\/a> See the original article here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The Port of Vancouver has emerged as a\u00a0lifeline for Asian oil refiners\u00a0amid disruption of the vital shipping route…\n","protected":false},"author":2,"featured_media":534234,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[49,48,295,66],"class_list":{"0":"post-534233","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-environment","8":"tag-ca","9":"tag-canada","10":"tag-environment","11":"tag-science"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/534233","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=534233"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/534233\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/534234"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=534233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=534233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=534233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}