Published on 16 May 2025
China has become the primary purchaser of Canadian crude oil transported via the expanded Trans Mountain pipeline, as the US trade war alters crude flows in response to President Donald Trump\'s trade policies, which have strained relations between longtime allies Washington and Ottawa.
This development highlights the impact of US sanctions on crude from countries such as Russia and Venezuela. The C$34 billion Trans Mountain pipeline is Canada\'s sole east-west oil pipeline, transporting oil to the Pacific Coast for loading onto tankers for export.
Since the pipeline\'s expansion, Canadian exports of crude to countries other than the US have risen nearly 60% to an annual record of approximately 183,000 bpd in 2024.
Canada prides itself as the world\'s fourth-largest oil producer, with an expansion operation that Commence on May 1, 2024, tripling the pipeline\'s capacity to 890,000 barrels per day and opening opportunities for Canadian oil along the US West Coast and in Asian markets.
According to Philippe Rheault, director of the China Institute at the University of Alberta, President Trump\'s tariff policies have enhanced Canada\'s appeal to Chinese buyers. He stated, \'A lot of China\'s refineries are also mindful of US sanctions, and so have been trying to diversify away from oil from Venezuela and other places.\'