Strathcona Seeks Ottawa Exemption for 250,000-Bpd Oil Export Route to Asia

Canadian oil producer Strathcona Resources plans to propose exporting up to 250,000 barrels per day of crude from British Columbia's northern coast to Asian markets, using rail shipments and a new marine terminal in Prince Rupert. The plan requires Ottawa to grant an exception to the federal oil tanker ban. Strathcona Chairman Adam Waterous told Bloomberg the company intends to approach Prime Minister Mark Carney's government as early as next week. He said exports could begin within two years, well ahead of Canada's proposed Pacific pipeline, which isn't expected to operate until the early to mid-2030s. Canada currently sends roughly 90% of its oil exports to the United States. The 2019 Oil Tanker Moratorium Act bars 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 the ban in July. Waterous cited Prince Rupert's existing rail-fed propane infrastructure and Strathcona's experience shipping up to 80,000 bpd by train to the U.S. Gulf Coast. B.C. Premier David Eby, environmental groups and coastal Indigenous communities oppose lifting the ban. If approved, the terminal would raise Canada's crude export volumes from the coast by nearly 50%.