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<\/a><\/p>\nCanada seeks to diversify its trade and economic relations in the face of tariffs from the Trump Administration and continued threats of additional tariffs that have soured the relations between the two closest allies and trade partners in North America.<\/p>\n
The government led by Prime Minister Mark Carney wants to make Canada an energy superpower. This includes moving more of Alberta\u2019s crude out of the country on tankers to Asia. Increased seaborne shipments to the world\u2019s most important oil-consuming region is also a way for Canada to diversify its oil export markets, dominated by the U.S. with over 95% of all Canadian oil exports.<\/p>\n
The expanded\u00a0Trans Mountain route<\/a>\u00a0is currently the only pipeline shipping Alberta\u2019s landlocked crude for exports on tankers from the West Coast.<\/p>\n Alberta has long called for additional outlets to the British Columbia coast to monetize the growing crude supply in the province.<\/p>\n The province\u2019s oil production hit a new record-high<\/a> in 2025, with average daily production up by 166,000 bpd, or 4.2%, compared to 2024. Alberta produced 4.1 million bpd last year, 84% of which was from the oil sands.<\/p>\n TMX, whose nameplate capacity was tripled to 890,000 bpd from 300,000 bpd before the expansion, was the key driver<\/a> of Alberta\u2019s record oil production while enabling more oil exports from Alberta to Asia.<\/p>\n Related: Shell Weighs Multibillion Dollar Venezuela Gas Investments<\/a><\/p>\n The value of Alberta\u2019s oil exports to Asia went from zero before the expanded pipeline began operations to over US$804 million, or C$1.1 billion, as of October 2025, according to data from ATB Economics.<\/p>\n \u201cEnhancements to the existing pipeline system and filling TMX to capacity will facilitate additional production in 2026,\u201d ATB Economics said, expecting oil and gas exports to grow by about 2% both this year and in 2027.<\/p>\n \u201cAt some point, though, without a new pipeline in place, a lack of pipeline capacity will once again act as a constraint on output growth, possibly as soon as 2028,\u201d analysts at ATB Economics said.<\/p>\n The strained U.S.-Canada relations have prompted Carney\u2019s federal government to support a new oil pipeline west, while TMX looks to boost crude flows within its existing capacity.<\/p>\n Trans Mountain Corporation this week moved to boost<\/a> oil flows via the pipeline by 10%, seeking approval to use drag-reducing agents (DRA) to increase volumes.<\/p>\n Federal government-owned TMX\u2019s application to the Canada Energy Regulator says that \u201cThe DRA Project will not result in incremental vessel traffic at the Westridge Marine Terminal beyond what was assessed during the reconsideration process for the Trans Mountain Expansion Project.\u201d<\/p>\n Commenting on the news, Alberta\u2019s Premier Danielle Smith said<\/a> \u201cAlberta is happy to see TMX working on increasing oil exports by 10%.\u201d<\/p>\n \u201cThe world needs our energy exports, notably Asian markets. We will continue pushing for more export capacity, including a new pipeline to the Canadian northwest coast,\u201d Smith added.<\/p>\n As early as July, Canada\u2019s PM Carney said that a new oil pipeline to Canada\u2019s Pacific coast is highly likely<\/a> to make it to the federal government\u2019s list of projects of national interest.<\/p>\n Carney visited China last month and signed a strategic<\/a> energy and trade cooperation agreement in a major policy shift that hailed \u201ca new era\u201d in bilateral relations.<\/p>\n Alberta\u2019s New Oil Pipeline Plan <\/p>\n Even before that, the governments of Canada and Alberta in November signed an agreement to increase oil exports<\/a> to Asian markets, address investment uncertainty holding back Alberta\u2019s energy economy, and reduce emissions.<\/p>\n This agreement lays out the path forward for an Indigenous co-owned pipeline to Asian markets, with both governments supporting its approval and construction. Provisionally named West Coast Oil Pipeline<\/a>, the project is now in the stage in which a technical advisory group is doing preliminary assessment work on the potential routes. Alberta\u2019s government expects to submit by July 2026 the project to Canada\u2019s federal Major Projects Office for designation as a project of national interest.<\/p>\n