Canadian Ministers Press for More Coastal Trade

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The leaders of the Canadian provinces said last week that the ability to ship oil and gas from all of its coasts should be a shared priority amid a U.S. tariff threat.

U.S. President Donald Trump is abandoning a free-trade agreement he helped broker during his first term in office that ended in 2021 by introducing new tariffs on aluminum and steel. He could go further by April 2 with import taxes on oil and gas.

Echoing a call from Alberta Premier Danielle Smith to put more emphasis on trade options outside North America, ministers on Friday said trade corridors should be expanded.

"First Ministers confirmed that a national trade corridor that connects the country from coast to coast to coast--to transport and export oil, gas, agricultural products, electricity, critical minerals, and other commodities--is a shared priority," their statement read.

Canada is the top crude oil exporter to the United States by far, accounting for about 60% of the total taken in by the world's largest economy. Realizing about US$86 billion in revenue, the U.S. accounts for 97% of total Canadian crude oil exports.

Railing against Trump's suggestion that Canada become part of the U.S. federal union, ministers also made special note of their own independence.

Tariffs, real or threatened, have upended Canadian politics. Finance Minister Chrystia Freeland resigned in December over concerns about a nationalist economic policy from the United States. Long-time Prime Minister Justin Trudeau stepped down earlier this year and newly-minted Prime Minister Mark Carney during the weekend called for snap elections. Addressing ministers before his election announcement, Carney proposed the creation of a "First Mile Fund," which would support rail and roadways between energy extraction sites. Elsewhere, as much as $140 million in federal funds would go toward the construction, commissioning and operation of the Cedar liquefied natural gas (LNG) facility in British Columbia.

Cedar LNG will consist of a floating liquefied natural gas (FLNG) facility in Kitimat, with a nameplate capacity of about 440 million cubic feet per day. Cedar is controlled by Pembina Pipeline Corporation (NYSE:PBA) (Calgary) and the aboriginal Haisla Nation. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can click here for the project report and click here for the plant profile.

That pales in comparison to the U.S. export potential, though it offers economies in the Asia-Pacific shorter transit routes relative to LNG coming out of the U.S. Gulf Coast. Trump last week proposed revitalizing LNG projects in Alaska, but costs and infrastructure make those unlikely.

Canada could also export more oil to its west coast. The Port of Vancouver already said export volumes set a record last year, supported by petroleum.

Carney, a former central bank official, said Canada needs a unified, provincial-wide effort to build its own economy.

"Canadians are ready to show the world that we can cheer for different teams and still be one strong team when it counts," he said.

Canadians vote for parties, not specific leaders. Elections are set for April 28.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).