Canada Relies on Trans Mountain to Boost Oil Exports to Asia

A system nearing saturation Two levers to increase flow without new pipeline construction A new pipeline project still at the proposal stage Trans Mountain Corporation chief executive officer (CEO) Mark Maki told Reuters journalists that the expanded capacity of the Trans Mountain pipeline should allow Asia, driven by Chinese demand, to absorb a growing share of Canadian crude oil exports. The remarks were made on the sidelines of the Asia Pacific Petroleum Conference (APPEC), held in Singapore on Tuesday, September 8, 2026. The executive spoke as the pipeline, the only infrastructure connecting Alberta's oil sands to a marine terminal on the Pacific coast, occupies a singular position in Canadian oil trade. This position gives its operator particular weight when discussing the country's future trade flows.Trans Mountain remains the only direct route to Asian refineries without transiting through the United States, a strategic advantage for Canada. The pipeline, whose expansion entered service in May 2024, operated below full capacity for several years before shifting to a contractual rationing regime, known in the pipeline industry as apportionment. This shift signals that shipper demand now exceeds available supply. It comes amid sustained growth in Canadian oil production, driven mainly by Alberta and its oil sands, which has allowed the country to strengthen its ranking among the world's top producers. The recent geopolitical context has boosted the appeal of Canadian crude for Asian refiners seeking reliable alternatives. The disruption of Middle East supplies linked to the conflict between the United States, Israel and Iran reportedly heightened this search for diversification, according to remarks reported by Reuters. China remains identified as the main driver of this growing Asian demand for Canadian oil.To increase the volume transported without building an entirely new pipeline, Trans Mountain Corporation is relying on two distinct levers. The first involves injecting chemical drag-reducing agents, or Drag-Reducing Agent (DRA), a solution that is quick to deploy but limited in scope in terms of capacity gains. The second, more substantial measure is the Mainline Optimization Project (MOP), an optimization project for the main line involving new pumping stations, whose commissioning is expected on a more distant horizon than that of the DRA. The timeline for the first measure was revised during the year, according to Jason Balasch, Trans Mountain Corporation's vice president of business development. This revision illustrates the difficulty of reliably forecasting the pace of capacity increases for infrastructure already close to its physical limit. On the governance side, Mark Maki has led Trans Mountain Corporation since September 1, 2024, when he succeeded Dawn Farrell, who became chair of the company's board of directors. He previously served, since 2020, as chief financial and strategy officer of the group. This internal continuity sheds light on the consistency the executive claims when discussing Trans Mountain's long-term commercial priorities.Beyond optimizing existing infrastructure, a new pipeline project has been jointly announced by the federal government, led by Prime Minister Mark Carney, and the Alberta government, led by Premier Danielle Smith. The project involves a second private pipeline operator and aims to open an additional route to the Pacific coast. Its announced capacity would be significantly greater than that of the optimization work currently underway on Trans Mountain. The project nevertheless remains at the proposal stage, with no route or financing definitively settled. Financing, final financial partners and the construction timeline for this new pipeline remain under negotiation. Its realization will depend on obtaining regulatory designations as well as the support of the Indigenous communities concerned. These conditions could influence the actual pace of diversification of Canadian oil outlets toward Asian markets.