G7 Backs More Canadian Heavy Oil as Hormuz Risks Persist
Canadian heavy oil is gaining strategic weight as global buyers hedge against Strait of Hormuz shipping risks, the Canadian Energy Centre reports via BOE Report. RBC analysts cited in the report note that even as US-Iran hostilities appear to ease, the Strait’s reopening will keep shaping trade flows for years, with much of the supply gap concentrated in heavy sour crude that Asian refineries are built to process. Canada, one of the world’s largest heavy oil producers, has become a bigger part of that supply picture since the Trans Mountain expansion entered service. According to ATB Economics figures in the report, Canadian oil exports to Asia, primarily Alberta oil sands heavy crude, jumped more than 1,700% from $500 million in 2023 to $9.3 billion in 2025. G7 leaders reinforced the trend at their June meeting in Évian, France, stating they “welcome the potential for Canada to deliver significant additional capacity to global markets in the coming years” as part of a broader push to diversify energy supply routes.
What It Means for Subcontractors
- Rising Westridge Marine Terminal throughput out of the Port of Vancouver points to sustained tanker loading activity, a signal for marine terminal maintenance, dock, and mechanical contractors to plan crew and equipment availability for 2026-27 bid cycles.
- The $9.3 billion jump in Asia-bound exports since 2023 suggests continued pressure on Trans Mountain pipeline throughput, work that pipefitting, electrical, and instrumentation contractors servicing the Alberta-to-Burnaby corridor should factor into upcoming maintenance and turnaround proposals.
- G7 backing for added Canadian capacity signals political tailwind for future expansion or debottlenecking work along the Trans Mountain system, a cue for EPC-adjacent trades (civil, E&I, coatings) to track upcoming FEED or capacity studies tied to the corridor.
