Canada fast-tracks 1mn b/d Pacific Link pipeline

Spanish Market: Crude oil
01/10/26

A proposed 1mn b/d oil pipeline from Alberta to Canada's west coast is a "project of national interest", prime minister Mark Carney said today, putting it on a path to fast-track approval.

The federal government is referring the planned pipeline, now called Pacific Link, to the Major Projects Office (MPO), which will review the project application over the next year. The MPO is designed to eliminate duplication and slash a lengthy approval process that existed before the federal government would finally weigh in.

"We're making our position clear at the beginning of the process, rather than at the end," Carney said.

The MPO, with support from the Canada Energy Regulator (CER), will aim to finalize the conditions for the pipeline by 1 September 2027, "clearing the way to get shovels in the ground", the prime minister said.

Pacific Link is designed to carry Albertan crude to an expanded Roberts Bank Terminal in metropolitan Vancouver, British Columbia. Importantly, the terminal will be able to accommodate very large crude carriers (VLCCs) capable of hauling up to 2.2mn bl, allowing oil sands producers to connect with buyers in Asia-Pacific more efficiently than they can with the existing 890,000 b/d Trans Mountain pipeline, which ends at a terminal limited to Aframax-sized vessels that can haul up to 750,000 bl.

Canada's exports to non-US countries have more than doubled since Trans Mountain Expansion pipeline came online in May 2024, even with its terminal being limited currently to loadings of 550,000-600,000 bl because of draft restrictions that should be resolved early next year.

Pacific Link will "materially reduce" dependence on the US, the current destination of 90pc of Alberta's oil, and play a key role in helping Canada double its non-US exports over the next decade, Carney said.

Alberta, which first conceived the project, has estimated Pacific Link will cost C$35.2bn-C$43.7bn ($25bn-$31bn) to build. If approved, Pacific Link could be completed between 2032 and 2034.

Alberta, through its Alberta Petroleum Marketing Commission (APMC), and Canada, through Trans Mountain, will hold majority interest in the project with Calgary-based Pembina Pipeline owning 10pc. Indigenous communities will be offered a minimum 10pc stake.

Project development will be led by Trans Mountain.

By Brett Holmes

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

01/10/26

US imports of Venezuela oil top 700,000 b/d in July

Houston, 1 October (Argus) — US crude imports from Venezuela continued to ramp up in July, rising by 11pc from the prior month, with refiner Valero as the top taker, according to Energy Information Administration (EIA) data. Total Venezuelan crude imports in July averaged 701,000 b/d, rising from 630,000 b/d in June and the highest volume since May 2017, the EIA said in its latest Petroleum Supply Monthly report. Imports of Venezuelan crude have ramped up this year since the US capture of former Venezuelan president Nicolas Maduro in early January and the subsequent lifting of sanctions on that country's crude exports. Previously, only Chevron held a special waiver from US sanctions to operate in Venezuela, limiting imports. Valero was the largest US recipient of Venezuelan crude in July, with a total of 282,000 b/d at three refineries — its 290,000 b/d Corpus Christi and 385,000 b/d Port Arthur refineries in Texas, and its 215,000 b/d St Charles plant in Louisiana, EIA data show. Citgo took the second-largest amount of Venezuelan crude in July with 112,000 b/d, while PBF Energy was third at 84,000 b/d. Other US refiners and trading companies that took Venezuelan crude in July included Phillips 66, Chevron, ExxonMobil, Marathon Petroleum, Pemex-owned Deer Park Refining, and Atlantic Trading and Marketing, according to the EIA data. While US refiners continue to take Venezuela crude, investment curiosity in that country is building, even as many companies also sound caution. Continental Resources, the US independent oil and gas firm founded by shale billionaire Harold Hamm, said last month that it plans to operate and develop a crude block in the Orinoco belt with Venezuela's state-owned PdV. Chevron has agreed to spend more than $7bn over the next five years to double its production from Venezuela. In addition, the White House announced a deal last month in which the US would take a 35pc stake in a little-known company purporting to invest $100bn in 17 Venezuela oil fields in exchange for promising to buy at least 20pc of future production at cost. Oil services companies are also making moves into Venezuela. Oilfield services giant Halliburton said last week that it signed agreements with Eneva, Brazil's biggest private natural gas operator, and engineering company West-Construcciones to support energy projects in Venezuela. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Saudi East-West crude pipeline at 5.5mn b/d: Source

01/10/26

Saudi East-West crude pipeline at 5.5mn b/d: Source

Dubai, 1 October (Argus) — Crude flows through Saudi Arabia's East-West pipeline have recovered to around 5.5mn b/d, according to a source, allowing for a restart of exports from the Red Sea port of Yanbu. The 7mn b/d capacity pipeline, on which Saudi Arabia had been relying to export crude since the US-Iran war disrupted seaborne movements through the strait of Hormuz, was shut on 10 September after a drone strike. Riyadh has yet to issue a formal damage assessment. Sources said three of the line's 11 pumping stations had sustained damage, one significantly. The pipeline itself sustained no damage, they said. Repairs to the most severely affected station would take weeks, they said. But state-controlled Saudi Aramco created a temporary bypass pipeline to route the crude around that station and the pipeline is today running at more than 75pc of capacity. The pipeline carries crude from Saudi fields and oil processing facilities near the Mideast Gulf to Yanbu for export, and supplies refineries, power stations and desalination plants on the Red Sea coast. Prior to the US-Iran war, 1.5mn-2mn b/d of crude would typically go through the line to feed those plants. But runs at Saudi Red Sea refineries have been reduced in recent weeks, primarily because Aramco shut its 400,000 b/d Jizan refinery following an attack in early September. At current flow rates, Argus estimates crude available for export at Yanbu is around 4mn-4.5mn b/d. Shipbrokers said exports appear to be resuming . Data from Kpler show crude exports from Saudi Arabia's Mideast Gulf port of Ras Tanura jumped in September to 3.6mn b/d from less than 1mn b/d in August, in response to the East-West pipeline outage and ongoing threats by Yemen-based Houthi militants to shipping in the Red Sea. Aramco has been inviting refiners in Asia-Pacific to bid for cargoes loading via ship-to-ship (STS) transfers in the Gulf of Oman, or for cargoes on a delivered basis, in September, October and November. It is unclear if the resumption of exports from Yanbu will necessarily shift supply back towards the Red Sea, especially given the continued risk for Saudi shipping through the Bab el-Mandeb. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Trump moderates calls for diesel export ban

30/09/26

Trump moderates calls for diesel export ban

Washington, 30 September (Argus) — President Donald Trump is tempering his endorsement of a diesel export ban because of concerns that it could push up gasoline prices, as his administration raises expectations of price relief from new diesel supplies in Europe. Trump said on Wednesday that although he was still "thinking about" a diesel export ban, he believes the US is in a "good place" because of a recent drop in crude prices and a "tremendous" volume of oil coming out of the strait of Hormuz. Trump had called for a diesel export ban last week, but administration officials have since said that an outright ban on exports is unlikely. "It's something that we think about and we talk about every day," Trump told reporters. "But it just seems that it would have a negative impact on gasoline. So that would go up a little bit, and diesel would come down a little bit, and we think we're in a very good place." US energy secretary Chris Wright earlier this week urged EU countries to fully follow through on commitments to release tens of millions of barrels of crude and oil products. Those pledges were part of a global release of 400mn bl of strategic stocks that IEA members agreed to in March. On Wednesday, Wright said he expects diesel prices will "move meaningfully down in the coming weeks and days", in part because of additional supplies of diesel coming out of Europe. "You will hear announcements from our friends in Europe about new diesel supplies that'll come to the market that'll meaningfully push diesel prices down," Wright said. European diesel prices slumped on Tuesday on news that EU leaders could discuss releasing more emergency stock releases when they meet next month. The EU must "evaluate the situation" regarding the release of emergency stocks, the EU's energy commissioner Dan Jorgensen said on Tuesday. EU countries as of May 2025 were holding nearly 39mn t of gasoil and diesel as part of emergency stocks, according to the latest Eurostat data. Nearly 50pc of oil industry officials the Dallas Federal Reserve surveyed in a report posted on Wednesday expect it will take more than a year for the spread between diesel and crude prices to return to 2025 levels, indicating an expectation of long-term refinery bottlenecks that push up diesel prices. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US 3Q energy activity up despite volatility: Dallas Fed

30/09/26

US 3Q energy activity up despite volatility: Dallas Fed

New York, 30 September (Argus) — US oil and gas activity increased in the third quarter even as firms grappled with ongoing price volatility linked to the Mideast conflict, according to a closely-watched energy survey from the Federal Reserve Bank of Dallas. The business activity index — the survey's broadest measure of conditions — remained positive but slipped slightly to 38.8 in the third quarter from 46.1 in the second, suggesting the pace of expansion slowed slightly. The survey was conducted between 16–24 September. "Many executives continue to see effects from the disruption to global supply and expect them to persist for some time," said Michael Plante, an assistant vice president at the Dallas Fed. Executives from exploration and production (E&P) companies said wild swings in oil prices due to the US-Iran war were making it hard to plan ahead. "It is very challenging to select a planning price or budgeting price," said one executive in the anonymous survey. "Instability will be the word for energy markets with no end in sight until the oil delivery stabilizes in the Middle East," wrote another. Survey respondents expect crude oil exports from the Mideast Gulf will take some time to return to normal levels following disruptions caused by the war. The most popular answer among respondents was by the second quarter of next year, followed by 2028 or later. Meanwhile, executives expect it will take more than a year for the spread between fuel and crude oil prices to return to 2025 levels. Almost half anticipate it will take diesel prices more than four quarters, compared with 36pc who expect the same for gasoline. Outlooks diverged in the latest survey, with producers remaining more positive than services firms. At the same time, E&P firms reported a higher uncertainty reading than services companies. Meanwhile, cost pressures remained at elevated levels across the energy sector, and companies reported longer supplier delivery times. "It could be that what is somewhat limiting the increase in activity is just the unavailability or the constraints of trying to get more and more goods to the oil field, getting more and more labor, getting more and more rigs," said the bank's senior business economist, Kunal Patel. The survey was carried out with firms operating in the Federal Reserve's 11th District which includes Texas, northern Louisiana and southern New Mexico. Of the 125 companies that took part, 83 were E&P firms and 42 were oilfield services firms. US benchmark crude WTI was expected to end 2026 at $88/bl, according to the average of survey responses, which ranged from $70-$126/bl. Respondents forecast Henry Hub natural gas prices ending this year at $3.29/mmBtu on average. WTI spot prices averaged $98.70/bl during the survey period, and Henry Hub prices averaged $2.97/mmBtu. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Electrification key to shift from fossils: Cop 30 head

30/09/26

Electrification key to shift from fossils: Cop 30 head

Edinburgh, 30 September (Argus) — Electrification will be a central element in the global roadmap to transition away from fossil fuels, which should be published on 3 November, UN Cop 30 climate summit president Andre Correa do Lago said during a ministerial meeting last week. Correa do Lago had pledged last year during the Cop 30 talks in Belem, Brazil to deliver a roadmap on the transition away from fossil fuel in a just and equitable manner after the summit ended without an agreement on the topic . "Electrification is absolutely central in the roadmap and we are happy to see that it is going to be widely discussed," he said. He was referring to the Cop 31 Turkish presidency's push for a global goal for electricity to reach 35pc of global final energy consumption by 2035 , up from around 20pc at present. The roadmap commitment is part of the implementation of the decision taken at Cop 28 in 2023, Correa do Lago told the electrification ministerial. The outcome from Cop 28, in Dubai, included a landmark consensus. Countries agreed to transition away "from fossil fuels in energy systems", as well as treble renewable energy and double energy efficiency rates by 2030, and to accelerate efforts towards the phase-down of unabated coal power". The Cop 30 presidency called for proposals from countries and civil society organisations on the roadmap at the end of February. The roadmap should conclude with recommendations on the shift away from fossil fuels, after setting out some potential risks and looking at supply and demand. The Brazilian government is also working on its own roadmap to phase out fossil fuels. Brazilian president Luiz Inacio Lula da Silva last week told the UN general assembly that the country "will move forward with a roadmap for decarbonisation of the Brazilian economy". Lula, who is running for another term in the presidential elections taking place next month, has pledged to expand investments in upstream oil and gas , refining and LNG logistics, while maintaining natural gas and biomethane as key transition fuels to support industrial development and power system reliability. Energy research firm Epe expects Brazil to produce 4.9mn b/d of crude by 2030, up from current production estimated at nearly 4.5mn b/d, according to data from hydrocarbons regulator ANP. The Brazilian government has previously said that developed countries should take the lead when it comes to "the definition of schedules for transitioning away from fossil fuels". By Caroline Varin and Charlotte Bawol Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more