CALGARY — Canada’s Trans Mountain pipeline has already reached full capacity just two years after its expansion entered service, renewing debate over whether Canada needs additional pipeline capacity to meet growing overseas demand for crude oil.
The pipeline, which carries oil from Alberta to British Columbia’s Pacific coast, is now operating at its maximum capacity of 890,000 barrels per day. Demand for space on the system exceeded available capacity in June, forcing apportionment among shippers.
The expansion, completed in 2024, was designed to open new export markets for Canadian producers and reduce reliance on the United States. Since then, demand from Asia has grown steadily, with China emerging as one of the largest buyers of Canadian crude.
Industry officials say geopolitical uncertainty has further increased interest in Canadian oil. Supply disruptions and concerns surrounding tensions in the Middle East, including shipping risks through the Strait of Hormuz, have prompted some Asian refiners to seek more stable sources of crude.
The pipeline reached full utilization far sooner than many expected, leading Trans Mountain to pursue additional optimization projects aimed at increasing capacity. The company has said upgrades, including the use of drag-reducing agents and additional pumping infrastructure, could eventually increase throughput to as much as 1.2 million barrels per day.
The development is also expected to add momentum to Alberta’s proposal for a second pipeline to the British Columbia coast.
Supporters argue additional export capacity will be needed as Canadian oil production continues to grow and overseas buyers look to diversify supplies away from politically unstable regions. Alberta’s oil production is expected to exceed last year’s record levels in 2026.
Critics, including environmental organizations and some Indigenous groups, continue to oppose new pipeline construction, citing environmental risks and concerns over tanker traffic on the West Coast.
Alberta is expected to continue advancing plans for a second west coast pipeline while Trans Mountain moves ahead with projects intended to expand capacity on its existing system.
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