Canada seeks to diversify energy markets toward Asia

Canada is seeking to diversify its energy markets and reduce its heavy reliance on the United States. Currently, approximately 90% of Canadian crude oil exports and nearly all natural gas exports are directed to the U.S. market.

Driven by American trade pressures and Middle East tensions, Ottawa is focusing on expanding infrastructure to reach Asian markets. Key strategies include developing a West Coast pipeline to transport oil to Asia and expanding Liquefied Natural Gas (LNG) projects. If successful, LNG initiatives could allow more than half of Canada's gas exports to reach markets outside the U.S.

The Canadian government aims to accelerate energy project licensing, reducing review times from several years to approximately one year, while providing tax incentives for investments in wells, pipelines, and processing facilities. Estimates suggest that planned expansions could increase Canada's oil transport capacity to 6.8 million barrels per day by 2034, with 30% of that capacity directed toward the West Coast and Asian markets.