Strathcona Resources wants to export up to 250,000 barrels per day of crude from British Columbia's northern coast to Asia by rail and a new marine terminal. The plan needs an exception to Canada's oil tanker ban, which Prime Minister Mark Carney reaffirmed in July.
Canadian producer Strathcona Resources wants to ship up to 250,000 barrels per day of crude oil to Asian markets from British Columbia's northern coast. First, it needs Ottawa to make an exception to its tanker ban.
A rail-and-terminal plan for Prince Rupert
Chairman Adam Waterous told Bloomberg the company plans to approach Carney's government as early as next week with a proposal to move crude by rail to a new export terminal in Prince Rupert. He believes exports could begin within two years, sooner than the proposed new oil pipeline to the Pacific coast, which isn't expected to operate until the early to mid-2030s.
Waterous argues Prince Rupert already has much of the necessary infrastructure because the port handles propane shipments arriving by rail. Strathcona also ships up to 80,000 bpd by train to the U.S. Gulf Coast through terminals in Alberta and Saskatchewan.
The tanker ban stands in the way
The proposal would avoid a new cross-province pipeline, but not the tanker restrictions. Former Prime Minister Justin Trudeau's 2019 Oil Tanker Moratorium Act prohibits tankers carrying more than 12,500 metric tons of crude or persistent oil from loading or unloading along the northern coast. Carney reaffirmed his commitment to that ban in July.
B.C. Premier David Eby, environmental groups and numerous coastal Indigenous communities oppose lifting the ban. Waterous hopes partnerships with Indigenous communities could help advance the project.
Canada currently sends roughly 90% of its oil exports to the United States, a dependency Carney has been looking to reduce. If approved, the 250,000-bpd terminal would increase Canada's existing crude export volumes from British Columbia's coast by nearly 50%.
Source: Oilprice.com
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