Alberta has opened early-stage talks with Japanese refiners to co-fund a coker that can run oil-sands heavy crude, aiming to support flows on the 890,000 bpd Trans Mountain system.
A Japanese coker would raise domestic capacity to process heavy, high-sulfur crude. Most refineries in the region cannot run Canadian blends today, however Pacific-bound Canadian barrels would also lessen Japan’s exposure to South China Sea chokepoints.
Alberta Energy Minister Brian Jean said in an emailed statement that the province “is exploring opportunities in Japan to sell our light and heavy oil,” but declined to comment on any investment discussions.
Sponsored · Altamira Gold Corp.
Canada remains reliant on the US for exports. Roughly 4 million bpd — about 90% of total exports — run south via north-south pipelines. Canada exported an average 4.2 million bpd in 2024, about 80% of national output.
Trans Mountain’s expansion last year tripled capacity, opening new Pacific options. China has been the top buyer of crude shipped on the line, followed by the US West Coast and South Korea. Japan, India, Singapore, Brunei and Taiwan have taken occasional cargoes.
The pipeline’s operator is evaluating projects that could add 200,000–300,000 bpd of capacity.
Kpler data show Eneos Holdings bought one 250,000-barrel cargo in 2024 and one 550,000-barrel cargo so far this year. That is a small base Alberta aims to grow.
Alberta is also lobbying for a new export conduit to the northwest coast and has stepped up outreach in Japan and South Korea. Ottawa says it is monitoring opportunities and “remains open to partnering with provinces and industry to support strategic energy projects that advance Canada’s national interests,” according to Natural Resources Canada.
The current talks are said to be very early and not finalized.
Information for this story was found via Reuters and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
