Canadian Oil Ships to Japan for First Time in Over a Year as Iran War Drags On

Crude oil tankers are docked at the Trans Mountain Westridge Marine Terminal, where crude oil from the expanded Trans Mountain Pipeline is loaded onto tankers, in Burnaby, B.C., on June 10, 2024. The Canadian Press/Darryl Dyck

A cargo ship loaded with Canadian crude oil is travelling from British Columbia to Japan, marking the first Canadian shipment of energy to the Asian country since early 2025.

The Marshall Islands-flagged Freedom Glory, which can carry up to 750,000 barrels of crude oil, loaded up on oil from the Trans Mountain pipeline in Vancouver and is on its way to Kiire, Japan.

The ship, which is being chartered by Exxon Mobil, left Canada on July 19 and is expected to arrive at its destination on Aug. 5.

Canada exports oil to Asian markets mainly through the Trans Mountain Pipeline running from Alberta to the coast of B.C. Through an expansion completed in 2024, the pipeline has been able to nearly triple its exports from 300,000 barrels per day to around 890,000 barrels per day.

The percentage of oil exports transiting to Asia from Vancouver via the Trans Mountain Pipeline has risen from 51 percent in 2024 to 77 percent in 2026, according to ship-tracking data from Kpler.

Japan relies on imports for more than 90 percent of its crude oil supplies, and has seen its imports decline as the fallout from the Iran war continues. Japan has responded by drawing down its deep strategic petroleum preserves and shifting its energy imports away from the Middle East.

Since the United States and Israel launched a military operation against Iran in late February, Iran has retaliated by attacking ships in the Strait of Hormuz, through which around 20 percent of global oil supplies flowed before the conflict began. Several oil and gas facilities in the Middle East have also been damaged by Iran and its Yemeni Houthi allies.

The Houthis have also declared a maritime embargo against Saudi Arabia and attacked a few ships transiting the Bab el-Mandeb Strait.

Prime Minister Mark Carney and Alberta Premier Danielle Smith signed an energy agreement in May that would potentially pave the way for construction of a new pipeline to the West Coast by 2027. Alberta officials say the pipeline could begin shipping 1 million barrels per day of oil to Asia by 2034.

In March, members of the International Energy Agency (IEA) agreed to release 400 million barrels of oil from reserves to address rising oil prices, which was the largest release in history. Canada committed to release 23.6 million barrels, but it does not have a strategic oil stockpile, so it pledged to release the oil through additional exports.

The United States agreed to release 172 million barrels. Its Strategic Petroleum Reserve has fallen to around 308 million barrels as of July 24, which is its lowest inventory level since 1983.