CDN NEWS | 
US NEWS 
(Reuters) – The collapse of trade talks with the United States has created urgency to plan a new oil pipeline to Canada’s west coast, the CEO of the government-owned Trans Mountain pipeline company said on Friday.
The project is still a concept, but both the oil-producing province of Alberta and Canada’s government say it is in the country’s national interest.
The need for it became more apparent this week, Trans Mountain CEO Mark Maki told Reuters. Canada, the world’s fourth-largest oil producer, sends about 90% of its oil exports to the U.S., but tensions between the countries are escalating.
President Donald Trump imposed a 50% tariff on $20 billion worth of Canadian goods last week, and angered Canadians by signing an executive order declaring that Lake Ontario, which spans the Canada-U.S. border, will now be called Lake America.
The situation has highlighted the need for Canada to diversify its exports, something the west coast pipeline proposal would do by increasing Canadian oil shippers’ access to Asia, Maki said.
“Events around us have made (the west coast pipeline) much more urgent, and I think that’s actually good. It’s helpful,” he said.
The 890,000-barrel-per-day Trans Mountain pipeline is the only east-west oil export pipeline in Canada. The Canadian government tripled its capacity in 2024, but Canadian oil production continues to grow and the pipeline is already running nearly full.
Trans Mountain Corp would develop and build the proposed west coast pipeline along a similar route to its existing pipeline, with financial support from the Alberta Petroleum Marketing Commission and Pembina Pipeline.
Project proponents want Ottawa to designate the pipeline as a project of national interest, which would allow for fast-tracked regulatory approval. Maki said Trans Mountain must move quickly to consult Indigenous communities and plan the route in order to file for regulatory approval early next year.
Trans Mountain is also working to optimize the existing pipeline by using drag-reducing agents to add 90,000 bpd of capacity by the end of this year.
The company expects to make a final investment decision by the end of 2026 on building more pumping stations to add 210,000 bpd of capacity by the end of 2028.
Reporting by Amanda Stephenson in Calgary Editing by Rod Nickel
Share This:
