Strathcona Pitches 250,000-Bpd Oil Export Route to Asia

Canadian oil company Strathcona Resources plans to export up to 250,000 barrels of crude oil daily from British Columbia's northern coast via train shipments and a new marine terminal in Prince Rupert, Asia. This proposal, presented to Prime Minister Mark Carney's government, could begin operations within two years, ahead of Canada's proposed oil pipeline to the Pacific coast, which is not expected to start until the early to mid-2030s.

Currently, Canada exports around 90% of its oil to the United States, a situation Prime Minister Carney is seeking to diversify due to trade tensions. However, Canada's 2019 Oil Tanker Moratorium Act, established by former Prime Minister Justin Trudeau, prohibits the loading or unloading of tankers carrying over 12,500 metric tons of crude or persistent oil along British Columbia's northern coast.

Prime Minister Carney reaffirmed this ban in July, making it a challenge for Alberta's plans to develop a 1-million-bpd pipeline to the coast. The proposed rail-to-terminal export system would sidestep the tanker ban but still faces restrictions. Strathcona boasts that the port of Prince Rupert, which handles propane shipments by rail, already has much of the required infrastructure in place.

Strathcona has previously transported crude oil by train, shipping up to 80,000 bpd to the U.S. Gulf Coast through terminals in Alberta and Saskatchewan. Despite significant political hurdles, including opposition from B.C. Premier David Eby, environmental organizations, and numerous Indigenous communities, Strathcona still hopes partnerships with Indigenous communities may support the project.

If granted, the proposed 250,000-bpd export terminal would increase Canada's crude oil exports from British Columbia by approximately 50%.