Canada Prepares 3 Million Barrels Daily in New Pipeline Projects
Canada is advancing nearly three million barrels of daily capacity through new routes and expansions, with Trans Mountain and Enbridge leading near-term additions.
Canada is moving forward with a broad wave of pipeline projects that could add nearly three million barrels per day to its oil transportation capacity. This expansion follows the successful launch of the Trans Mountain Expansion in May 2024 and aims to diversify export routes beyond the United States. The strategy reflects a shift toward multiple international markets, supported by record crude exports to non-US destinations last year.
The proposed capacity varies significantly in maturity, ranging from sanctioned expansions to early-stage political concepts. While the total figure is substantial, it includes overlapping segments and domestic supply projects that do not directly contribute to new international exports. The Bank of Canada notes that existing infrastructure has helped stabilize the discount between Western Canadian Select and West Texas Intermediate, providing a financial incentive for further development.
West Coast Pipeline Leads Proposal
The largest single proposal is a new West Coast Oil Pipeline capable of moving one million barrels per day. This roughly 1,250-kilometre route would extend from Alberta to a deepwater terminal in British Columbia. A national-interest decision is expected by October 2026, with potential construction start in late 2027. The project is designed to follow the existing Trans Mountain corridor, minimizing new environmental review hurdles while maximizing throughput to Asian markets.
Existing Systems Receive Upgrades
Trans Mountain and Enbridge are executing near-term optimizations that add hundreds of thousands of barrels daily. Trans Mountain targets 300,000 barrels per day in additional capacity by the end of 2028, with the first 90,000 barrels arriving in early 2027. Enbridge plans to expand its Mainline and Express-Platte systems by up to 430,000 barrels per day, with initial increases beginning in 2027. These upgrades leverage existing infrastructure, offering lower costs and faster timelines than greenfield projects.
Domestic Routes Face Uncertainty
Other proposals focus on domestic supply rather than direct export. The Northern Shield pipeline would move 500,000 barrels per day from Alberta to Ontario refineries, with a feasibility study due by the end of 2026. A reworked Keystone XL concept, called the Prairie Connector, targets 550,000 barrels per day with a final investment decision expected in mid-2027. These projects compete for the same crude supply and capital, creating a complex decision matrix for producers and investors.
