Trans Mountain Continues to Be Boon to Canada

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The expansion of the Trans Mountain oil pipeline system helped increase Canadian crude oil export capacity, with around 80% of the volume committed to long-term contracts, the government said.

An expansion project completed in May 2024 nearly tripled the capacity on the Trans Mountain system to a total of 890,000 barrels per day (BBL/d). The 36-inch, 720-mile pipeline is among the few arteries for exports outside of North America.

Canada Energy Regulator stated Wednesday that 80% of the capacity is reserved under long-term, take-or-pay contracts, with the remaining 182,000 BBL/d reserved for spot shipments.

"From June 2024 to June 2025, committed capacity was effectively fully utilized each month, averaging 99% utilization," the regulator revealed.

Subscribers to Industrial Info's Pipeline Asset Database can click here for a detailed report on Trans Mountain.

That comes amid a nationwide push to expand Canadian trade options outside North America. Reliant on trade, particularly to the United States, provincial and national leaders are racing for new opportunities given the ire expressed toward the nation by U.S. President Donald Trump.

Though energy was spared, Trump enacted steep tariffs on aluminum and steel, complicating supply-chains across North America. Canada, however, recently brokered a trade agreement with the European Union that could open up new export corridors for Canada's low-carbon steel.

Last week, meanwhile, Canadian Prime Minister Mark Carney launched the Major Projects Office from Calgary, which was set up to facilitate nation-building projects.

"Canada must draw on this legacy and act decisively to transform our economy from reliance to resilience," Carney said. "We are moving at a speed not seen in generations to build ports, railways, energy grids -- the major projects that will unlock Canada's full economic potential and build Canada strong."

Carney also expressed interest in building up the nation's midstream oil and gas sector to open up new corridors. Since coming online last year, the expansion to Trans Mountain has already increased total western Canadian crude oil export capacity by 13%, the government said.

The pipeline terminates at the Westridge delivery point in Vancouver. The network carries mostly heavy crude oil from Alberta, which is destined for U.S. and Asian markets. Advancing trade-diversity efforts, the government said crude oil exports to countries other than the United States have more than tripled since the expansion project was completed.

The line carried a lighter crude oil slate before the expansion, but has added heavier crude since 2024. Canada is the largest crude oil exporter to the United States, largely because many U.S. refineries are designed to run those heavier grades.

Owned by the Canadian government, the Trans Mountain pipeline company said last month it was exploring options to increase the pipeline capacity by as much as 300,000 BBL/d. Through August, however, the pipeline has only been operating at 82% of its peak capacity.

Even with increased trade tensions, Canada over the four-week period ending August 22 delivered 3.9 million BBL/d to U.S. refiners, about 2.5% higher than during the same period last year.

Most of the heavy crude is situated in Alberta, where energy product exports to the U.S. accounted for USD$96 billion in trade last year. The United States is also a net importer of natural gas from Canada.

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).