Strathcona Resources has outlined a plan to export crude oil from British Columbia’s northern coast to Asian markets using rail transportation and a new marine terminal facility. The company intends to move up to 250,000 barrels per day through this route, with Chairman Adam Waterous indicating that initial discussions with the federal government could occur as early as next week.
The proposal would circumvent the need for a new interprovincial pipeline by utilizing existing rail infrastructure and establishing an export terminal in Prince Rupert. Strathcona pointed to the port’s current capability to handle propane shipments via rail and noted the company’s experience transporting crude by train, including operations shipping up to 80,000 barrels daily to the U.S. Gulf Coast. Waterous suggests crude exports could commence within two years, offering a faster timeline compared to Canada’s proposed pipeline project expected to commence operations in the early to mid-2030s.
However, the plan faces a significant regulatory hurdle. Federal law prohibits tankers carrying crude oil exceeding 12,500 metric tons from loading or unloading along British Columbia’s northern coast. Prime Minister Mark Carney’s government reaffirmed commitment to this tanker moratorium in July, creating complications for energy export initiatives. For Strathcona’s project to proceed, Ottawa would need to grant an exemption to the longstanding restriction.
Political opposition to lifting the ban remains formidable, with British Columbia’s provincial government, environmental organizations, and Indigenous coastal communities expressing concerns. Strathcona indicated it would seek partnerships with Indigenous communities to help advance the initiative. The proposal would expand Canada’s existing crude export capacity from the British Columbia coast by approximately 50% if approved, while also reducing the nation’s current reliance on U.S. export markets, which receives roughly 90% of Canadian oil exports.
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