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FinanceJapan's Eneos buys rare Canadian crude cargo to diversify from Middle East
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Japan's largest refiner, Eneos, has purchased a rare cargo of Canadian crude oil, marking the first such shipment to a Japanese company since 2025, according to ship-tracking data from Kpler and LSEG. The 750,000-barrel cargo was loaded on an Aframax tanker and sold by Exxon. The purchase reflects Japan's ongoing efforts to diversify its crude oil sources away from the Middle East, which previously supplied over 90% of its crude. The oil was transported via the Trans Mountain pipeline (TMX) to the coast of British Columbia, which has been operating at double its capacity of 890,000 barrels per day since 2024. Analysts note that Canada's role in Asia's import strategy is growing, with India, Malaysia, and Singapore also buying TMX crude. Trans Mountain Corp. has announced plans to further boost pipeline capacity to 1.2 million barrels daily due to strong Asian demand.
Source report
Japan's largest refiner, Eneos, has acquired a rare cargo of Canadian crude as the country intensifies efforts to reduce its reliance on Middle Eastern oil supplies.
According to Reuters, which cited ship-tracking data from Kpler and LSEG, this marks the first Canadian oil shipment purchased by a Japanese company since 2025. The cargo was loaded onto an Aframax tanker with a capacity of 750,000 barrels. The seller was Exxon.
Growing Role of Canadian Crude in Asia
"Japan's renewed purchases of TMX crude highlight Canada's growing role in Asia's evolving import strategy as refiners diversify away from Middle East Gulf supplies," said Kpler senior analyst Richard Ro, as quoted by Reuters.
Canada exports oil to Asian markets via the Trans Mountain pipeline, which reaches the coast of British Columbia. Since 2024, the pipeline has been operating at double its original capacity of 890,000 barrels per day, as Canadian producers seek a larger share of Asian markets.
Middle East Instability Drives Shift
Ongoing oil export disruptions in the Middle East have made Canadian crude increasingly attractive—particularly for countries like Japan, which sourced over 90% of its crude oil from Middle Eastern producers before the war.
Since the conflict began, Japan has actively pursued alternative suppliers, including the United States and Russia. In addition to Japan, India, Malaysia, and Singapore are also purchasing crude from Alberta, transported via the Trans Mountain pipeline to the coast.
Rising Export Volumes to Asia
According to Reuters, 77% of total oil exports from the port of Vancouver have gone to Asia since the start of the year, compared to 51% in 2024, when the TMX pipeline launched at double capacity.
Pipeline Capacity Expansion Planned
Driven by strong international demand for Canadian crude, Trans Mountain Corp. announced earlier this year that it is planning to further increase pipeline capacity—potentially to 1.2 million barrels per day.
By Irina Slav for Oilprice.com
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Japan's Eneos Purchases Rare Canadian Crude Cargo to Diversify from Middle East