Canada’s West Coast Ports Drive Trade Growth Beyond the U.S.

Port of Vancouver has 29 deep-water terminals and plays a key role in Canadian trade (Port of Vancouver file photo)

Published Aug 26, 2026 6:44 PM by The Maritime Executive

As it finds itself locked in a deepening trade war with the United States, Canada is successfully building its international trade. A newly released study sponsored by Canada’s West Coast ports shows that they are playing a critical role in growing foreign trade as the Canadian government highlights that it is investing in the country’s seaports.

The Economic Impact of West Coast Ports study, released today, August 26, highlights that British Columbia’s maritime gateways at the ports of Vancouver, Prince Rupert, and Nanaimo (sponsors of the study along with two trade associations) serve as the backbone of Canada’s international trade. The three ports handled more than 200 million metric tonnes of cargo in 2025 worth C$409 billion (US$295 billion), of which C$270 billion was Canada’s trade with overseas trading partners, or nearly half of Canada’s trade with markets outside North America.

The ports highlight that they are moving record volumes of what Canadians make, mine, harvest, and grow to global customers in more than 170 overseas markets. They handle a diverse mix of cargo, supporting the movement of everything from bulk exports of Canadian energy, forestry products, potash, grain, and critical minerals to two-way container trade and imports of Asian-made vehicles, manufacturing parts and household necessities.

Not included in the study, but also a key contributor was the opening of Canada’s LNG export terminal. It is the only North American Pacific Coast LNG terminal and is expected to make strong inroads into Asian markets. It is being followed by others and offers the advantage of shorter distance and eliminates the need to transit the Panama Canal.

“West Coast ports like Vancouver have an outsized role to play as Canada looks to double exports to non-U.S. markets over the next 10 years in support of a thriving national economy,” said Peter Xotta, President and CEO, Vancouver Fraser Port Authority.

The Port of Vancouver, with its 29 major deep-water terminals, is active in five key sectors: auto, bulk, breakbulk, container, and cruise. To the north, the Port of Prince Rupert handles raw materials as well as containers, and the Port of Nanaimo, located 30 nautical miles from the Port of Vancouver, is emerging on the Pacific coast. It supports containers, auto, bulk, breakbulk, cruise, and logistics services.

Canada's new government highlights that it is “laser-focused on building a stronger, more independent, more resilient Canadian economy.” Speaking on Monday, August 24, Prime Minister Mark Carney highlighted the government’s commitment to the ports. In the east, he pointed to the expansion of the Port of Montréal at Contrecoeur with a new container terminal and at the Port of Québec to move more Canadian products to global markets.

Port of Vancouver officials highlight their planned Roberts Bank Terminal 2 to expand container capacity as well as the new federal Port of Vancouver Gateway strategy that is currently being developed. Similarly, the Port of Prince Rupert points to C$3 billion (US$2.2 billion) in ports underway that will expand capacity and support diversification.

The West Coast ports are highlighting their economic contribution to Canada and the role they are playing in expanding Canadian trade globally. The full report is posted online.
 

Trillion-Dollar Port: Houston's Petroleum Trade Supports Millions of Jobs

Courtesy Port Houston

Published Aug 26, 2026 8:18 PM by The Maritime Executive

Plenty of ports contribute billions of dollars in economic value to their respective regions, but only a few reach above that mark. Port Houston's latest economic impact assessment suggests that it supports nearly $1 trillion in economic activity - roughly three percent of U.S. gross domestic product. 

The study is an update performed by Martin Associates on behalf of Port Houston, and builds on previous work in 2022. By 2025, economic activity supported by Port Houston rose by about $100 billion, reflecting substantial growth in business along the Houston Ship Channel. 

The study also found that the port's economic activity supports 3.5 million jobs nationwide, one out of every 50 jobs in the country,d including 1.9 million jobs in Texas alone (up 22 percent since 2022). The vast majority of these positions depend to varying extents on trade through the port, but are not directly linked to its daily operations. A much smaller number, about 92,000 positions, are directly employed with the port, its terminal operator partners or various contractors. Those local waterfront posts are well-paid, according to the study's authors, and bring home $8.5 billion a year in wages (about $92,000 per person on average). 

The national economic impact is driven in large part by the port's massive petroleum and chemical trade. Port Houston's terminals handle nearly 300 million tons of cargo every year, the overwhelming majority in the form of liquid bulk.   

"The Houston Ship Channel is one of the country's most important economic corridors, and these findings demonstrate its impact far beyond our region," said Charlie Jenkins, CEO of Port Houston. "Manufacturers, energy producers, businesses, and consumers across the country depend on this critical gateway to move products."

Klaipeda Port Largest-Ever Expansion Project Moves Into Construction Phase

Port of Klaipeda

Published Aug 28, 2026 8:06 AM by The Maritime Executive

[By: Port of Klaipeda]

The Port of Klaipeda is moving into a new phase of the largest expansion project in its history, with the first works now getting underway. Site preparation has started in the southern part of the port, where a major new port area will be developed in the coming years.

“We are now very close to the start of the southern port expansion. After a long period of planning and preparation, work on site is beginning. Once the site is ready, construction of the southern breakwaters will start this autumn, marking the first stage of the largest expansion project in the history of the Port of Klaipeda. This project shows that we are steadily moving forward with our plans to build a stronger port for Lithuania. It will make the country more attractive to investors, strengthen our competitiveness in international markets and support military mobility needs that are important not only for Lithuania, but for the wider region,” says Algis Latakas, CEO of the Klaipeda Port Authority.

The southern breakwaters will be built by Tilsta, which won the tender launched earlier this year. The contract signed with the Klaipeda Port Authority is worth EUR 24.5 million excluding VAT. Construction is expected to begin this autumn.

The new breakwaters will also serve an important environmental purpose by helping to limit the flow of salt water into the Curonian Lagoon.

The southern port expansion will create new space and significantly increase the Port of Klaipeda’s capacity for port operations and cargo handling. Nearly EUR 600 million – the largest share of the Port’s investment programme for 2026–2029 – is planned for the project.

Together with investment expected from future investors, the total value of the development will exceed EUR 1 billion, making it one of the largest investment projects currently being developed in Lithuania.

The products and services herein described in this press release are not endorsed by The Maritime Executive.

Ningbo-Zhoushan Tops Singapore as World’s Second Busiest Container Port

Ningbo-Zhoushan edged out Singapore to take second place in a ranking of the highest volume container ports (Ningbo-Zhoushan)

Published Aug 26, 2026 5:35 PM by The Maritime Executive

China’s ports are continuing to support the expansion of the country’s exports despite the Trump administration’s efforts at tariffs. China now has six of the top 10 ports by volume, according to Alphaliner’s latest rankings, and in a surprise move, the Ningbo-Zhoushan port complex edged out Singapore for the position of the world’s second busiest port.

Officials at the Zhejiang Provincial Seaport Group and Ningbo-Zhoushan Port Group highlighted that they had fully implemented their plans to strengthen work style and efficiency. The port complex has continued its rapid growth. It finished 2025 only about 800,000 TEU behind Singapore, and with the continued growth, it has now edged out Singapore and slipped into second position on Alphaliner’s Top-30 chart for global port throughput.

Ningbo-Zhoushan is growing at nearly twice the rate of Singapore, with the chart showing 8.8 percent growth for throughput in the first half of the year versus 4.7 percent for Singapore. Both ports showed slowing growth rates versus 2025, but still Ningbo-Zhoushan ended up ahead by 158,310 TEU.

The expectation is that the two ports will continue in a neck-and-neck race for the remainder of the year. However, China’s growth rates continue above those of most other countries.

Shanghai remains firmly atop the list at more than 28.7 million TEU, according to Alphaliner’s data. Last year, Shanghai broke the 55 million TEU mark for the first time, with officials pointing to the efficiency from the increasing levels of automation in the port. In July, recovering from the impact of a typhoon, Shanghai reported it smashed the record for a single-day volume, moving nearly 204,000 TEU.

China’s Shenzhen, Qingdao, Guangzhou, and Tianjin were also among the 10 busiest container ports in the first half of 2026. Tianjin also showed strong growth, helping it to edge out Busan by nearly 400,000 TEU over the six months to move up one spot, claiming number 7 on Alphaliner’s table.

Analyzing the changes, Alphaliner says the half-year data “shows the widespread impact of geopolitical trends on the global container market, as carriers adjusted their networks in reaction to the Middle East conflict and shippers responded to the US tariff policy.”

It highlights the most significant drops were in the Middle East, where the war and the closing of the Strait of Hormuz dramatically impacted the fortunes of Dubai’s Jebel Ali port and Abu Dhabi’s Khalifa Seaport. Jebel Ali’s volumes, they report, plummeted over 90 percent to just 374,000 TEU for the second quarter and 3.14 million TEU for the six months, which was down 23 percent. 

As a result, Jebel Ali fell out of the top 30 ranking to 32nd place. Similarly, Khalifa Seaport fell from its previous position of 32nd out of the top 50 reports by Alphaliner. They note exact numbers have not been published, but they believe based on wider group results that Jebel Ali’s volumes fell at least 50 percent.

Most of the other global ports retained the order in the ranking or moved up or down one notch. Combined, the Port of Los Angeles and Long Beach came in again at number 9, handling just under 10 million TEU in the first half of the year. They are the only U.S. port to be in the top 10, with the Port of New York and New Jersey a distant second, falling one notch to 22 on the chart. It handled 4.4 million TEU, which was relatively stable compared to 2025.

CMA CGM and Saudi Arabia to Invest $434M to Expand Jeddah Islamic Port

CMA CGM will invest in the expansion of the container terminal capabilities at Saudi Arabia's Jeddah Islamic Port (RSGT)

Published Aug 25, 2026 7:52 PM by The Maritime Executive

An agreement was signed in Paris during a French-Saudi Investment Roundtable that calls for CMA CGM and Red Sea Gateway Terminal (RSGT), Saudi Arabia's terminal operator, to expand the Red Sea Jeddah Islamic Port. Working in collaboration with the Saudi Ports Authority (Mawani), the companies will be marking one of the largest foreign direct investments in Saudi Arabia's maritime sector.

The project will bring approximately $434 million in investment into Jeddah Islamic Port and create a new state-of-the-art container terminal as part of RSGT’s existing concession. It will add up to approximately 2.6 million TEUs of annual handling capacity at the port, which currently has a capacity of 6.2 million TEUs. It will include new deep-water berths designed to accommodate the world's largest container vessels supported by advanced terminal technologies and 10 new ship-to-shore cranes.

RSGT calls the Jeddah operation its flagship terminal, noting that it is the largest and most advanced container terminal on the Red Sea. It accounts for nearly 40 percent of Saudi Arabia’s container throughput. 

The companies highlighted that the development project will enhance productivity, efficiency, and service reliability for customers across the Kingdom and the wider region. They said the enhanced marine infrastructure will strengthen Jeddah Islamic Port's ability to efficiently serve larger vessels and major international shipping services, supporting greater trade volumes, stronger global connectivity, and more efficient access to international markets for Saudi imports and exports. The development also further reinforces the successful partnership between the Kingdom, represented by the Saudi Ports Authority (Mawani), RSGT, and CMA CGM Group.

The project will provide critical future capacity to accommodate the Kingdom's growing trade requirements while strengthening the port's position on major global shipping routes. The addition of deep-water berths will enable the terminal to efficiently accommodate larger, next-generation container vessels, helping attract and retain major shipping services, increase cargo flows and enhance the connectivity of Saudi businesses to global markets. 

Red Sea Gateway Terminal (RSGT) is Saudi Arabia’s first privately funded terminal operator. To serve a broader range of customers and cargo types, RSGT also offers Multi-Purpose Terminals (MPT) services through a dedicated business unit that manages non-containerized cargo across four strategic locations on Saudi Arabia’s Red Sea coast. It handles containers, Ro/Ro, general cargo, dry and liquid bulk, as well as livestock.

The Red Sea ports have become critical to Saudi Arabia due to the disruptions in the Strait of Hormuz. However, it is now having to address the declared “blockade” by the Houthis to the south in Yemen, which is disrupting some operations. However, the Kingdom looks to expand its capabilities as part of its goal to expand its role as a trade hub for the region.
 

Ksi Lisims LNG signs benefit agreements with 3 First Nations

By

The Canadian Press

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Published: June 09, 2026 

Nisga'a Nation President, Eva Clayton, speaks during a Ksi Lisims LNG announcement of an environmental assessment certificate from the Government of British Columbia in Vancouver, on Tuesday, Sept. 16, 2025. (Ethan Cairns / The Canadian Press)

The lead developer of the Ksi Lisims liquefied natural gas project planned for the West Coast has announced benefit agreements with three First Nations in northern British Columbia.

Houston-based Western LNG says two of those communities — the Metlakatla First Nation and Lax Kw’alaams Band — have in turn withdrawn their legal challenge to the federal approval of the $10-billion project.

The third agreement is with the Gitxaala Nation.

The benefit agreements cover aspects like economic development opportunities and climate initiatives for the affected communities.

The other Ksi Lisims partners are Rockies LNG, a consortium of Canadian natural gas producers, and the Nisga’a Nation, on whose land the project would be built.

Ksi Lisims has recently announced preliminary supply deals with German utilities and the partners aim to make a final go-ahead decision this year.

“We have always envisioned the Ksi Lisims LNG project as economically important for the entirety of northwest B.C., and we are pleased to see this vision materializing,” said Eva Clayton, president of the Nisga’a Nation.

This report by Lauren Krugel of The Canadian Press was first published June 9, 2026.

Germany's Big LNG Deal With Canada May Never Deliver a Single Cargo

By Andrew Topf - Jun 10, 2026

• Germany has signed long-term LNG offtake agreements with Canada's Ksi Lisims project, seeking energy security and supply diversification amid heightened geopolitical risks.
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• Despite the deals, Canadian LNG may never physically reach Germany due to geography, shipping economics, and the lack of Atlantic Coast export infrastructure.
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• Instead, Germany could use LNG cargo swaps, sending Canadian gas to Asian buyers while receiving equivalent volumes from suppliers closer to Europe.
• 
  

The Iran war has made supplies of liquefied natural gas, or LNG, the most strategic since Russia’s invasion of Ukraine in 2022.

Suddenly, countries are scrambling to get their hands on molecules that provide reliable baseload power to industries and homes.

That explains why Germany is buying LNG from Canada. It’s to ensure long-term energy security, reduce reliance on volatile global supplies, and diversify away from Middle Eastern and Russian energy markets.

At the end of May, the Canadian government brokered a deal between the Ksi Lisims LNG facility planned for north of Prince Rupert, on the British Columbia coast, and German company SEFE, which is agreeing to buy 1 million tonnes of LNG per year for up to 20 years

Ksi Lisims LNG is a joint venture owned by the Nisga’a Nation, Texas-based Western LNG, and Rockies LNG, a consortium of Canadian natural gas producers.

The agreement marked the first long-term LNG supply arrangement between a Canadian project and a European buyer.

On June 8, a second, preliminary deal was announced. Germany’s Uniper signed a letter of intent with Ksi Lisims LNG for a possible offtake agreement of 2 million tonnes of LNG per year.

Construction of the facility, which has an annual capacity of 12 million tonnes, could begin in 2027, although there some significant hurdles to overcome.

First and foremost is a Final Investment Decision. To get an FID across the line, Ksi Lisims must show there is enough demand to start construction. The JV already has binding offtake agreements with Shell (NYSE:SHEL) and TotalEnergies. With SEFE and Uniper, up to 7 million tonnes have been annually committed. Will that be enough, and will the facility be profitable in a future LNG market? Ksi Lisims must decide.

The $10 billion project is also facing political and legal challenges about the environmental impacts increased gas production and shipping will have on the area:

Two B.C. Supreme Court petitions were filed over the provincial government's decision last year to deem the Prince Rupert Gas Transmission pipeline "substantially started," meaning it wouldn't need a new environmental assessment.

The liquefied natural gas pipeline's construction, which was authorized in 2014, and a deadline to start it was extended to 2024, spurring the court challenges from Gitxsan Hereditary Chief Charlie Wright and environmentalist groups opposed to the project.

Construction started in 2024 but the pipeline is not yet finished.

These are all significant obstacles, but the bigger question is how Ksi Lisims would get the LNG from the Canadian West Coast to Germany.

Opposition Leader Pierre Poilievre has said the better option would be to ship it from the east coast. But there are currently no operational LNG export plants on that side of Canada; only an import and peaking facility in New Brunswick owned by Repsol.

The only large-scale LNG facility in operation is LNG Canada in Kitimat, close to the proposed Ksi Lisims plant. The first phase of LNG Canada was finished in 2025; a year ago it loaded its first export cargo.

When asked why Ottawa wouldn’t pipe LNG across the country, then ship it directly across the Atlantic to Germany, the energy minister said it's cheaper to move the product by water — through the Panama Canal — than it is to pay tolls through a pipeline.

In practice, Germany may never receive LNG directly from Ksi Lisims, despite the project signing two separate offtake agreements.

Instead, the German companies could employ a concept that is becoming increasingly common in LNG markets: cargo swaps

Here’s how it works: Instead of purchasing the LNG and physically delivering it to Germany, the companies would purchase the cargo and redirect it to buyers in Japan, South Kora, Taiwan or other Asian markets. In exchange, the companies would receive LNG from suppliers closer to Europe, like the US, Qatar, Algeria or Norway.

The result, says EnergyNow via the Financial Post, is lower shipping costs, shorter transit times, reduced congestion risk, and greater flexibility while maintaining the same overall gas supply balance.

This is already how major LNG portfolio players such as Shell, TotalEnergies, BP, and SEFE manage global supply chains. LNG contracts increasingly represent access to molecules rather than a commitment to move specific molecules from one point to another.

In the end, “the molecule doesn’t matter as much as the contract.”

A Canadian LNG contract provides supply from a stable democracy, reduced exposure to political disruptions, diversification from a single supplier, and long-term contractual security, states EnergyNow.

Reuters previously reported that German buyers are increasingly interested in acquiring Canadian LNG cargoes specifically because they can be swapped within global markets. Canadian Energy Minister Tim Hodgson noted that European buyers see value in holding Canadian LNG positions even if the fuel is ultimately consumed elsewhere.

By Andrew Topf for Oilprice.com

Uniper Targets Canadian LNG Supply Deal With Ksi Lisims

By Charles Kennedy - Jun 08, 2026

Uniper has signed a letter of interest to buy 2 million tonnes per year of LNG from Canada’s planned Ksi Lisims LNG export project.

The two companies have agreed on key commercial terms for a potential long-term LNG supply and purchase agreement covering 2 million tonnes per annum, with first deliveries possible from 2032. The volumes would come from the proposed 12 mtpa floating LNG export facility on the northwest coast of British Columbia.

The deal underscores Europe’s continued push to diversify LNG supply after the loss of Russian pipeline gas, while also giving Canadian LNG developers a potential foothold in European markets. Ksi Lisims LNG is being developed by the Nisga’a Nation, Rockies LNG and Western LNG, with gas expected to be supplied through the Prince Rupert Gas Transmission pipeline from the Western Canadian Sedimentary Basin.

The project is designed to use British Columbia’s hydroelectric grid, which the developers say could cut greenhouse gas intensity by up to 90% compared with conventional LNG facilities. Ksi Lisims LNG and the PRGT pipeline have secured key environmental approvals and have been identified by Canada as Projects of National Interest. A final investment decision is still pending, with construction potentially starting in early 2027.

By Charles Kennedy for Oilprice.com

Morgan Stanley Sees Asian LNG Prices Soaring to 3.5-Year High

By Tsvetana Paraskova - Jun 09, 2026

Asia’s benchmark LNG prices are set to jump to the highest level in three and a half years in the second half of 2026 as demand is rising amid high electricity summer demand and the EU needs to refill depleted gas storage sites, Morgan Stanley analysts reckon.

The Asian LNG price is expected to increase to $25 per million British thermal units (MMBtu) in the third and fourth quarters of 2026, Morgan Stanley said in a note carried by Bloomberg. The price forecast suggests an upside of more than 30% to the forward curve, the investment bank’s analysts say.

The projected LNG price would be the highest level the Asian LNG benchmark has reached since January 2023, during the energy crisis in Europe, which scrambled for LNG supply to replace Russian pipeline gas.

Following weak demand in March and April this year, LNG consumption and buying have started to recover in many Asian markets amid the urgency to prepare for the summer heat, according to Morgan Stanley’s analysts.

So prices are set for an increase even if the Strait of Hormuz re-opened and LNG cargo traffic was restored today, the bank said.

China is already raising LNG purchases. Its state-controlled energy giants and some private companies are buying and importing the highest volumes of liquefied natural gas since the war in Iran began, as the world’s top LNG importer prepares for peak summer demand and heat waves.    

Amid the LNG supply crunch from the Middle East and the approaching summer heat in north Asia, China’s 30-day moving average for deliveries has jumped to 178,000 tons per day, the highest since early February, according to Bloomberg’s estimates. Chinese buyers started to purchase more cargoes in the middle of April and have been keeping a high rate of imports since then.

This suggests that the gas markets in Asia and Europe will tighten as we move into the summer months amid increased demand for cooling and electricity.

By Tsvetana Paraskova for Oilprice.com

 

Alberta Courts Asian Capital for 1M bpd Pipeline to Break U.S. Dependence

By Alex Kimani - Mar 25, 2026

• Asian and Middle Eastern investors are willing to fund a major Alberta-to-Pacific pipeline to reduce Canada’s reliance on U.S. exports.
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• Indigenous opposition, tanker bans, and complex approvals threaten the project’s feasibility despite strong economic potential.
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• Middle East disruptions highlight Canada’s potential as a stable supplier, but limited infrastructure may prevent it from fully capitalizing.
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Asian and Middle Eastern capital is lining up behind Alberta’s latest export push. Premier Danielle Smith says investors, including sovereign wealth funds, are prepared to take 15% to 30% minority stakes in a proposed 1-million-barrel-per-day pipeline aimed at Asian markets.

The plan centers on moving oil sands crude to the northwest coast of British Columbia, with Prince Rupert now favored over Kitimat as the terminal site. The objective is straightforward: break Canada’s near-total dependence on the U.S., which still absorbs roughly 95% to 97% of Alberta’s crude exports.

For Edmonton, the pipeline is a direct response to chronic transport bottlenecks that have long capped production growth and discounted Canadian crude.

But the political barrier is just as clear. Indigenous leaders along B.C.’s coast remain firmly opposed to lifting the tanker ban, calling it non-negotiable, setting up a familiar standoff between market access and local consent.

The 2019 Oil Tanker Moratorium Act bans vessels carrying over 12,500 metric tons of crude or persistent oil from stopping, loading, or unloading at ports along British Columbia's northern coast, specifically protecting areas from Northern Vancouver Island to the Alaska border. The Act intends to protect fragile marine ecosystems and the Great Bear Rainforest. The project's feasibility also depends on ongoing negotiations regarding carbon pricing, with negotiations between Alberta and the federal government on an industrial carbon tax and the Pathways Alliance carbon capture project expected to miss an April 1 deadline.

A recent study by ATB Financial and Studio.Energy found that expanding Canadian oil pipeline capacity could boost export capacity by an additional 1.5 million barrels per day, add an average of $31.4 billion annually to Canada's real GDP between 2027 and 2035 (~1.1% of GDP) and support 112,000 extra Canadian jobs. The joint study by Studio.Energy and ATB Economics revealed that increased capacity to the West Coast allows for better access to Asian-Pacific markets, reducing reliance on U.S. routes and strengthening economic security. 

The proposed pipeline could do much of the heavy lifting for Canada’s oil export ambitions thanks to its massive capacity, comparable to the famous BTC pipeline, with a throughput capacity of 1.2 million barrels per day (bpd). The Baku-Tbilisi-Ceyhan (BTC) pipeline is a 1,768-kilometer (1,099-mile) crude oil pipeline that serves as a primary energy corridor linking the landlocked Caspian Sea to the Mediterranean. It originates at the Sangachal Terminal near Baku, Azerbaijan, traverses Georgia via Tbilisi, and terminates at the Ceyhan Marine Terminal on Turkey's southeastern coast.

The Iran conflict has positioned Canada as a potentially reliable, low-risk oil and natural gas supplier for its allies, potentially boosting its energy exports. According to Eric Nuttall, senior portfolio manager at Toronto-based Ninepoint Partners, the Middle East conflict is a “massive opportunity” for Canada, which can position itself as a stable and secure supplier of oil.

Nuttall argues that Canada is uniquely positioned as a stable and secure energy supplier with decades of inventory in the oil sands and the Clearwater formation. The Clearwater Formation in Alberta, Canada, holds vast, high-viscosity heavy oil and bitumen reserves, with estimated in-place volumes exceeding 70 billion barrels in the Cold Lake area alone. Production is expected to grow, with estimates that it could hit nearly 400,000 bbl/d by 2031. The war has also accelerated calls to ramp up Canada’s LNG export capabilities, with companies like ARC Resources (OTCPK:AETUF) and TC Energy (NYSE:TRP) looking to benefit.

Unfortunately, limited pipeline capacity coupled with long regulatory approvals for infrastructure threaten to hinder Canada’s ability to fill the global supply gap. Major Canadian oil pipeline projects have historically faced significant political and regulatory hurdles, resulting in several high-profile cancellations and delays. U.S. President Joe Biden famously revoked the permit for the cross-border permit for TC Energy's Keystone XL project in 2021 on his first day in office. The project was designed to carry oil from Alberta to Texas, with a capacity of 830,000 barrels per day.

Indeed, the Trans Mountain Expansion (TMX) stands as the only major recent expansion project to reach completion in Canada after becoming operational in May 2024. TMX was similarly plagued by legal challenges from First Nations and environmental groups, leading the federal government to purchase it from Kinder Morgan (NYSE:KMI) for $4.5 billion in 2018 to ensure its completion. Massive cost overruns also threatened to derail the project after final construction costs surged from an initial estimate of $5.4 billion to nearly $35 billion.

Prime Minister Mark Carney’s government is working to streamline Canada’s byzantine energy regulatory hurdles, and has pledged to come up with an efficient approval process that will attract the private sector. Carney has proposed creating "energy corridors" to facilitate project development and has encouraged provinces to create agreements to allow regional assessments to substitute for federal reviews. The Carney government is focused on attracting private capital, and has doubled the Indigenous Loan Guarantee Program to $10 billion in a bid to support Indigenous ownership of major resource projects.

By Alex Kimani for Oilprice.com