Canada Expands Energy Exports to Asia, Reducing U.S. Dependence - TMX, LNG, and SMR Deals With China, Malaysia (TSX: CTC; NYSE: TRP)

Canada is accelerating energy exports to Asian markets through new trade agreements with China and Southeast Asia, reducing reliance on the U.S. after recent tariff tensions. The shift follows the May 2024 launch of the Trans Mountain Expansion (TMX), which tripled pipeline capacity to 890,000 barrels per day and enabled direct crude shipments to Asia via Westridge Marine Terminal. Prime Minister Mark Carney’s January 2026 meeting with President Xi Jinping yielded a strategic partnership including a 6.1% tariff on up to 49,000 Chinese electric vehicles annually, aimed at boosting Canada’s EV supply chain. Canada exported $30 billion in goods to China in 2024, while importing $90 billion. Separately, a 2025 Letter of Intent with Malaysia covers LNG, oil, renewables, and small modular reactors (SMRs), leveraging Canadian CANDU technology. The TMX terminal now supports 34 Aframax tankers monthly, with 75% of crude being heavy sour oil bound for complex Asian refineries. Canada also advances the Canada-ASEAN Free Trade Agreement (ACAFTA) to expand access to the $5 trillion regional market.