Increased direct pipeline capacity to western Canada will likely cut into crude shipments departing from the US Gulf Coast
Letter from Canada: Exporters eye pipeline options
Reverse flows on the Capline pipeline and expansion of the Trans Mountain system will dramatically boost capacity
Exports of Western Canadian crude to Asia jumped at the end of last year, as flows were reversed along the Capline pipeline to send volumes to the US Gulf Coast. But the US Gulf Coast export option for Canadian crude going east could be superceded next year by a more profitable route to Asian markets. The Trans Mountain Expansion (TMX) project is due to come online early next year. And that increase in direct pipeline capacity to western Canada will likely cut into the crude shipments departing from the US Gulf Coast. Exports of Canadian heavy crude oil to Asia via the US Gulf Coast surged to 266,000bl/d in December, according to consultancy Kpler, after averaging 172,000bl/d in the first 11
Also in this section
9 March 2026
Petroleum Economist analysis sees increases in output from Saudi Arabia, Venezuela and Kazakhstan among others before region’s murky descent
9 March 2026
Energy sanctions are becoming an increasingly prominent tool of US foreign policy, with the country’s growth in oil and gas production allowing it to impose pressure on rivals without jeopardising its own energy security or that of its allies, argues Matthew McManus, a visiting fellow at the National Center for Energy Analytics
6 March 2026
The March 2026 issue of Petroleum Economist is out now!
6 March 2026
After Europe’s rapid buildout of floating LNG import capacity, Exmar CEO Carl-Antoine Saverys says future growth in floating gas infrastructure will increasingly be driven by developing markets as lower prices, rising energy demand and the need to replace coal unlock new opportunities for unconventional and tailor-made solutions
