Midstream and Rising Canadian Production & Exports

Core Insights - Rising production and export volumes are driving moderate long-term adjusted EBITDA growth for Canadian midstream corporations, with significant operations in the U.S. [1] - The Canadian government is prioritizing energy infrastructure approvals to support increased production and exports, particularly to Asian markets [1] - The Trans Mountain expansion and LNG Canada are pivotal projects enhancing Canada's energy export capacity [1] Canadian Crude and NGL Exports - The Trans Mountain pipeline's capacity increased from 300 MBpd to 890 MBpd, facilitating a rise in Canadian crude exports to non-U.S. markets from 112 MBpd in February 2024 to 549 MBpd by November 2025 [1] - The Trans Mountain expansion is expected to optimize flow rates by up to 10% (~90 MBpd) through a $9 million project, with additional capacity assessments underway [1] - Canada aims to increase overall exports to China by 50% by 2030, with the U.S. still being the dominant energy trading partner, importing ~4.1 MMBpd of Canadian crude in 2024 [1] Infrastructure Developments - The Building Canada Act established the Major Projects Office to expedite critical infrastructure projects, including the proposed West Coast Oil Pipeline with a capacity of at least 1 MMBpd [1] - The Ridley Island Energy Export Facility is under construction to meet rising Asian demand for NGLs, designed to export 55 MBpd of propane and butane [1] LNG Export Growth - Canada officially became a global LNG exporter with LNG Canada loading its first cargo on June 30, 2025, and has since shipped over 25 cargoes [1] - Future LNG projects, including Ksi Lisims LNG and LNG Canada Phase 2, are designated as "projects of national interest" to meet growing Asian demand [1] Midstream Sector Outlook - Canadian midstream companies are defensive investments with strong dividend track records, representing 26.7% of the Alerian Midstream Energy Select Index as of February 5 [2] - Companies like Pembina and Enbridge are investing in LNG export projects, while two-thirds of Enbridge's C$30 billion investment program is allocated to the U.S. [2] - The outlook for Canadian energy production and exports remains positive, supported by government initiatives and infrastructure developments [2]