Since the Trans Mountain expansion, it has almost tripled the capacity of Canada’s only oil pipeline from Alberta to the Pacific Coast, raising it to 890,000 barrels a day.
Since the launch of the expanded Trans Mountain pipeline last year, Canadian oil producers have more export capacity than they currently use, according to a recent report. This has made it harder for the government to encourage new shipping routes.
Trans Mountain is Canada‘s pipeline, which transports oil and refined products from Alberta to the West Coast of North America.
Since the Trans Mountain expansion started operating in May 2024, Western Canadian pipelines have had about 400,000 barrels per day more capacity than the average oil exports, according to the Canada Energy Regulator. In June, oil production reached a peak of 574,000 barrels per day.
Since the Trans Mountain expansion, it has almost tripled the capacity of Canada’s only oil pipeline from Alberta to the Pacific Coast, raising it to 890,000 barrels a day. This allows producers to increase output after years of having to sell oil at low discounts compared to US prices.
Even with the current pipeline surplus, Alberta Premier Danielle Smith is pushing for a new pipeline from the oil sands to northern British Columbia. This would help reduce the industry’s dependence on US buyers. Prime Minister Mark Carney is also open to new pipeline projects during the ongoing trade dispute with the US. He has assigned former Trans Mountain CEO Dawn Farrell to lead efforts to speed up major new infrastructure projects.
In June, Smith stated that she expected a proposal from the private sector for a new pipeline to the Pacific would be announced within weeks, although no such plan has been publicly announced yet.
Even without a new pipeline, the industry expects more shipping capacity in the next few years. Trans Mountain plans to boost its system to as much as 1.2 million barrels per day. Enbridge Inc. also plans to expand its Mainline system, which is Canada’s largest pipeline export network to the US.
Alberta Premier Danielle Smith thinks a private company will be one of the first projects on the Canadian government’s list of nationally significant projects.
Smith said she is talking with major energy companies and believes a pipeline to the northwest British Coast is the most practical and affordable option the private sector could consider. She did not say which company might propose the project.
She stated in an interview that she expects a private company to carry out a project in partnership with a government or public entity. When asked about the anticipated timing for the proposal, she stated it would be a few weeks.
Pipelines to the West Coast have long been a top priority for Canada’s energy sector. They would help producers rely less on the US market and get better prices for their oil. The Trans Mountain expansion last year now lets Canada send more crude to Asia, which has helped stabilize and raise local oil prices.
On Friday, Canada’s House of Commons passed a bill aimed at speeding up the construction of infrastructure, including pipelines and electrical transmission lines. This legislation, referred to as Bill C-5, permits proposals which is claimed to be in the national interest to undergo faster assessments regarding environmental and other impacts.
The aim of the legislation is to ensure that major projects receive approval within two years, offering certainty for companies before they make any extensive investment plans.
Smith stated that Prime Minister Mark Carney will soon be developing his national projects list, and she aims to be the first included on it.
Former Prime Minister Justin Trudeau scrapped the Northern Gateway pipeline by Enbridge Inc. after a court blocked it due to opposition from environmental and indigenous groups. However, US President Donald Trump‘s tariffs have again started the discussions about Canada increasing its oil and gas exports through ocean ports, and Carney has shown openness to exploring the possibility of new pipelines.
