NextFin news, Alberta's government is considering a financial investment in Japan's refining sector as of August 25, 2025, in Calgary, Alberta, to reduce its heavy reliance on the United States for oil exports, according to sources who spoke to Reuters and were reported by CBC News.
The province is in early-stage discussions with several Japanese crude oil refiners about a potential joint venture. This venture could involve Alberta funding the construction of a coker unit in Japan, which would enable Japanese companies to process heavy crude oil produced in Alberta's oilsands. Such an investment would be unprecedented for Alberta, which has not previously invested in foreign energy infrastructure.
This initiative follows the opening of the Trans Mountain pipeline expansion last year, which increased Canada's capacity to ship oil via the Pacific Coast to 890,000 barrels per day. Alberta aims to leverage this increased capacity to diversify its oil export markets beyond its top trade partner, the United States.
For Japan, the addition of a coker unit would increase its ability to process heavy, high-sulfur Canadian crude, which is currently incompatible with most of Japan's existing refining facilities. Japan currently imports the majority of its oil from the Middle East. Increasing Canadian crude imports that transit directly across the Pacific Ocean would also reduce Japan's dependence on oil shipments through the South China Sea, a strategic maritime chokepoint.
Alberta Energy Minister Brian Jean confirmed that the province is exploring opportunities in Japan to sell both light and heavy oil but declined to comment specifically on investment talks in Japan's refining sector. The federal government, through Natural Resources Canada, is monitoring developments and remains open to partnerships that support Canada's national energy interests.
Since the Trans Mountain pipeline expansion, Japan's Eneos Holdings has purchased Canadian crude cargoes, including a 250,000-barrel cargo last year and a 550,000-barrel cargo so far this year, according to Kpler ship tracking data.
Alberta has also been actively lobbying pipeline companies to build new crude oil export infrastructure to Canada's northwest coast to further increase oil production and export capacity. Canada exported an average of 4.2 million barrels per day of oil in 2024, representing about 80 percent of its total production.
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