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Expanded Trans Mountain Pipeline and Chinese diversification driving surge
Harvard Media News was among the first to report that China’s Rongsheng Petrochemical planned to open an office in Calgary to help facilitate Canadian oil purchases. That move appears to be part of a larger trend, as energy trade between Canada and China is now surging to record levels.
China is importing more Canadian oil than ever before after slashing U.S. oil purchases by 90 per cent. Imports of Canadian crude reached 7.3 million barrels in March, the highest monthly total on record.
The growth is being supported by the expanded Trans Mountain Pipeline, which is enabling Canadian producers to reach Asian markets more efficiently. The pipeline’s capacity is helping Chinese buyers and other East Asian nations access Canada’s abundant reserves of heavy crude.
Beijing’s increased purchases reflect a broader strategy to diversify energy imports. China has been seeking to reduce its reliance on oil from the United States, Russia and the Middle East, and Canada’s high-quality heavy crude has become an increasingly attractive option.
The shift comes at a time when Ottawa is under pressure to finalize a trade agreement with Washington. Canadian leaders are now weighing opportunities to deepen economic ties with Beijing, a move that could help reduce the country’s dependence on the U.S. market.
China is already Canada’s second-largest trading partner, with Canadian exports to the country valued at $47 billion in 2024. The record levels of oil exports to China may signal further opportunities for Canadian producers and could help solidify a stronger long-term trade relationship between the two countries.
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