Strathcona Resources has proposed a plan to export up to 250,000 barrels of crude oil per day from British Columbia’s northern coast, contingent on receiving federal approval to bypass the existing oil tanker ban. The company’s chairman, Adam Waterous, indicated that discussions with Prime Minister Mark Carney’s government may begin as early as next week.
The proposal involves transporting crude via rail to a new export terminal in Prince Rupert, aiming for shipments to commence within two years. This timeline is significantly shorter than the forecasted completion of a new oil pipeline to the Pacific Coast, which is expected to take until the early to mid-2030s to become operational.
Currently, approximately 90% of Canada’s oil exports are directed to the United States, a reliance that the Canadian government has been seeking to reduce amid ongoing trade tensions. However, the proposed project faces substantial legal hurdles due to the Oil Tanker Moratorium Act, which was enacted under former Prime Minister Justin Trudeau in 2019. This legislation prohibits tankers carrying over 12,500 metric tons of crude oil from loading or unloading along British Columbia’s northern coastline.
Despite Carney’s reaffirmation in July of his commitment to this ban, which challenges Alberta’s ambitions for a 1-million-barrel-per-day pipeline, Strathcona is investigating alternatives that might sidestep the need for a new interprovincial pipeline while still navigating the restrictions on tanker usage.
Waterous highlighted that Prince Rupert already possesses much of the required infrastructure, as the port is equipped to handle propane shipments delivered by rail. The company also has prior experience in moving crude by train, having successfully transported up to 80,000 barrels per day to the U.S. Gulf Coast through terminals in Alberta and Saskatchewan.
Political opposition adds another layer of complexity to the proposal. British Columbia’s Premier David Eby, along with various environmental groups and coastal Indigenous communities, has expressed opposition to lifting the tanker restrictions. Waterous remains optimistic that building partnerships with Indigenous groups could bolster the initiative.
If the federal government were to approve Strathcona’s proposal, the new terminal could potentially increase crude oil exports from British Columbia’s coast by nearly 50%, offering a quicker route to Asian markets. However, this would require revisiting a policy that was reaffirmed only three months ago.
