The $18 billion pipeline stretching 773 miles that feeds two continents

Canada is set to distribute its oil to new markets in Asia, including Japan, China, and India, thanks to an expanded oil pipeline.

The Trans Mountain pipeline, which stretches over 773 miles, has cost the government a whopping $18 billion for its expansion. This hefty investment is expected to bring substantial returns as Canada seeks to diversify its oil product markets.

The oil and gas sector accounts for about 5% of Canada's GDP, with a staggering 95% of the oil being produced in Alberta, situated in western Canada. Every day, millions of barrels of oil are extracted from the state's oil sands.

Up until now, a massive 98% of this oil was destined for the US. Advocates for the pipeline construction argue that dependence on a single market has been suppressing Canadian crude prices for years.

The new Trump administration's engagement in a trade war will likely motivate the push to diversify the market further. Canada has long aimed to transport its oil to Asia, with a growing demand for energy products.

However, Alberta's central location means it's hundreds of miles away from either coast in the country. The original Trans Mountain pipeline, built in 1953, was the only pipeline transporting oil from Alberta to the west coast.

Thus, in 2013, energy company Kinder Morgan submitted an application to increase its capacity. Originally, the project was expected to cost around $3 billion, but faced delays due to fierce resistance from environmental and Indigenous groups.

In 2018, the Canadian government stepped in to finish the project, buying the pipeline from Kinder Morgan. The ambitious project aimed to tap into new markets in Japan, India, and China by transporting more oil to a newly expanded Westridge Marine Terminal near Vancouver.

The project involved nearly 120 miles of reactivated pipeline, 19 new storage tanks, and three new shipping berths. The goal was to triple the pipeline's capacity to transport almost 900,000 barrels daily.

Ultimately, it cost the government over six times the initial estimate to build. According to the Bank of Canada, the expansion is expected to contribute 0.25% to the country's GDP.