More Alberta propane flowing to Asian markets as trade relationship with U.S. falters

Brendan Coulter · CBC News

· Posted: Apr 07, 2025 1:52 PM EDT | Last Updated: 9 minutes ago

Canada's propane exports reached grounds highs past year, with much Alberta-produced propane than ever earlier arriving successful Asia.

Last year, much than 40 per cent of Canadian propane exports flowed crossed the Pacific Ocean, with Japan and South Korea emerging arsenic cardinal markets, according to a caller investigation from the U.S. Energy Information Agency (EIA).

All of it travels via 2 caller marine export terminals astatine the Port of Prince Rupert connected the B.C. northbound coast — 1 connected Ridley Island operated by Calgary-based AltaGas and different connected Watson Island operated by Calgary-based Pembina. 

"With the treatment and dynamic playing retired betwixt the U.S. and Canada, and the hazard of tariffs, it's highlighted the value of Canada's ports," said Shaun Stevenson, president and CEO of the Prince Rupert Port Authority.

"Certainly, we've played a large relation successful Alberta's commercialized docket implicit the past decades, and that relation is increasing."

Overseas propane exports from Canada person accrued each twelvemonth since 2019, per the EIA analysis, and grew by 10 per cent from 2023 to 2024.

The terms of propane is besides typically overmuch higher successful Asian markets compared to the U.S., meaning Canadian producers marque much by sending it overseas. 

New marketplace maturation invited arsenic Trump spurs uncertainty

Until 2018, Canada sent each of its propane exports to the United States, said the EIA. But past year, lone astir 58 per cent of Canada's propane exports went southbound of the border.

As the travel of Alberta-produced propane swells crossed the Pacific, the province's vigor manufacture faces historical uncertainty successful dealing with American partners.

U.S. President Donald Trump concisely imposed a 10 per cent tariff connected Canadian vigor exports successful March but past scrapped the policy.

Energy exports to the U.S. are not presently taxable to tariffs, truthful agelong arsenic they suffice nether the Canada-U.S.-Mexico Agreement (CUSMA) for preferential treatment.

Still, the uncertainty created by Trump's planetary commercialized warfare is affecting decision-making successful the sector, according to Richard Masson with the University of Calgary School of Public Policy. 

"Right now, there's truthful overmuch uncertainty that beauteous overmuch everybody is going to beryllium saying. 'I'm not going to proceed with immoderate caller concern that I don't person to make,'" helium said. 

"Anybody who has shareholders, bondholders, authorities investors needs to beryllium capable to accidental to them, 'the crushed we're moving guardant is due to the fact that I deliberation I'm going to make wealth doing this.' And that is not thing anybody truly has immoderate comfortableness successful close now."

But astatine a Calgary Chamber of Commerce lawsuit past Thursday, Alberta Premier Danielle Smith said Canada's premiers are much unfastened to talking astir caller lipid and state infrastructure, compared to six months ago, due to the fact that of the commercialized uncertainty.

"I deliberation that we've alternatively undersold the accidental that we person with Prince Rupert," said Smith. 

"I don't cognize wherever we'll beryllium successful 20 years, but it volition beryllium very, precise steadfast for our state to person aggregate commercialized partners that we tin trust on."

Asian marketplace entree acceptable to turn with caller project

More than 20 per cent of Japan's full propane imports travel done the Port of Prince Rupert, according to Stevenson, compared to astir 15 per cent of full propane imports for South Korea. Access to non-U.S. markets done the Port of Prince Rupert volition grow, helium said, arsenic existent projects spell online. 

"There's a increasing designation that we request alternatives, we request options if we're going to get the highest worth from the earthy resources that Canada is blessed with having," said Stevenson.

"You can't look astatine accumulation of those resources without looking astatine the proviso chains and the marketplace access."

A $3 cardinal enlargement of the larboard is underway, helium said, including the Ridley Island Energy Export Facility, oregon REEF, built adjacent to the existing export terminal connected the island. It volition summation capableness for propane and butane exports by 55,000 barrels per day. 

According to REEF proponents AltaGas and Royal Vopak, propane shipped from Prince Rupert tin scope Asian markets successful 10 oregon 11 days — overmuch faster than propane sent from the U.S. Gulf Coast oregon the Arabian Gulf.

The task is expected to beryllium complete in 2027, said Stevenson.