Recently, Canada’s oil and gas pipeline industry has seen a surge of global attention. According to Mordor Intelligence data, the overall market size and share of Canada’s oil and gas pipeline services are projected to grow in the coming years. However, the process of approving and constructing pipeline projects still faces multiple challenges, including policy uncertainty. In particular, insufficient transport capacity in Canada’s crude oil sector has become a primary hurdle to production growth.
At the same time, Canada’s domestic political climate is shifting. When U.S. President Donald Trump threatened to launch a trade war and claimed the United States could achieve self-sufficiency in oil, it compelled Canada to reconsider its own energy security and the importance of diversifying its export markets.
François-Philippe Champagne, Canada’s federal Minister of Innovation, Science and Industry, recently stated that, under these circumstances, Canada may need a pipeline running from Alberta to the East Coast to better meet global market demand and reduce reliance on the U.S. market. Alberta Premier Danielle Smith has also called to reopen discussions on major pipeline projects in order to transport Canadian oil and gas more quickly to overseas markets.
In an interview, Champagne noted that “things have changed,” adding that the country must “look forward,” and suggesting that a pipeline connecting eastern and western Canada might be necessary.
Nonetheless, cross-provincial or inter-regional pipeline projects remain controversial, given environmental concerns and social acceptance issues. The canceled Energy East project, for example, faced tough regulatory pressures and public opposition—along with company worries over policy uncertainty—which led to its collapse.
While the Quebec government has traditionally taken a cautious stance toward new pipeline projects, it has recently signaled renewed openness to the liquefied natural gas (LNG) project proposed in the Saguenay region (LNG-Québec). This week, Quebec Environment Minister Benoit Charette said the government would revisit the project, noting that the province does not oppose energy initiatives provided they meet environmental requirements. This illustrates how Canadian provinces’ positions have begun shifting in response to global energy upheavals and geopolitical pressures.
Now, Canada is actively working to open new export markets beyond the United States, particularly in Asia, where energy demand remains high. If a new pipeline were built, it could open vast opportunities for Canada’s oil and gas exports. The key challenge moving forward will be how to balance economic benefits, social acceptance, and environmental objectives to ensure the successful development of any new pipeline projects.
As transport bottlenecks and regional differences become increasingly apparent, it is no exaggeration to say that Canada’s oil and gas pipeline industry is on the brink of significant change.
