News - Added pipeline capacity expands markets for Canadian energy

Added pipeline capacity expands markets for Canadian energy

October 29, 2026

Between 2021 and 2025, new pipeline capacity helped Canadian energy reach more international markets. At the same time, growing oil and natural gas production kept major pipelines highly utilized.

As Canadian oil and gas move across provincial and international borders, they travel through pipelines regulated by the Canada Energy Regulator (CER). These pipelines make up about 10 per cent of Canada's oil and gas pipeline network. The publication, Canada's Pipeline System, 2021-2025: Trends and Developments, examines how production, markets, prices, regulation, finances and ownership evolved over this five-year period. It also explores how CER-regulated pipelines connect Canadian supply with markets at home and abroad.

Expanded crude oil capacity and market access

The Enbridge Canadian Mainline added crude oil capacity in 2021, followed by the expanded Trans Mountain System in May 2024. The Trans Mountain expansion provided greater access to overseas markets, and the share of Canadian crude oil exports going to destinations outside the United States rose from 2% in 2021 to 10% in 2025.

Added pipeline capacity helped narrow the price discount on western Canadian crude oil relative to U.S. oil. Meanwhile, western Canadian oil production grew 14% to 5.1 million barrels per day between 2021 and 2025. As production increased, Canada's crude oil export pipelines remained highly utilized in 2025.

Growing natural gas production, limited spare capacity

Pipeline capacity and market access also expanded for Canadian natural gas. In June 2025, LNG Canada began operations, marking the start of Canada's first large-scale liquefied natural gas exports from a Canadian facility and opening new access to overseas markets.

Canadian marketable natural gas production increased 18% between 2021 and 2025, reaching 19.1 billion cubic feet per day. With growing production, major pipelines carrying natural gas out of western Canada remained highly utilized, with limited spare capacity at most key points.

Explore the full report for a broader view of Canada's pipeline system, including crude oil and natural gas pipelines, as well as the pipelines and other transportation routes that move natural gas liquids and refined petroleum products.