Refineries in Canada: 6 Frequently Asked Questions (+ Answers)

#1 - How Many Refineries Are in Canada?

Canada has 16 refineries, not including upgraders or the lubricants facility in Mississauga: 5 in Alberta, 4 in Ontario, 2 in British Columbia, 2 in Saskatchewan, 2 in Quebec, and 1 in New Brunswick ^[2]. Together, they have a total refining capacity of just over 1.9 million barrels of oil per day.

In 2025, Canada’s refineries consumed 1.6 million bpd of crude oil, about 90% of their total capacity ^[2]. Refinery utilization rates are driven by “turnarounds,” or seasonal maintenance.

The majority of refined products from Canada’s refineries are consumed domestically, while about 20% are exported ^[2].

Refineries in Western Canada and in Quebec/Eastern Canada processed 619,000 bpd (89% capacity) and 624,000 bpd (89% capacity) in 2025, respectively. Ontario’s refineries, with lower capacity, processed about 386,000 bpd, or 92% of capacity, that same year ^[2].

#2 - Where Do Canadian Refineries Source Oil From?

For the most part, Western Canadian refineries in Alberta, British Columbia, and Saskatchewan have direct pipeline connections to major oil production sources in the Western Canadian Sedimentary Basin. As a result, their input feedstock is domestically sourced.

Central and Eastern Canadian refineries in Ontario, Quebec, and New Brunswick import a portion of their crude oil supply, but also rely on Western Canada, which is shipped through the United States via the Mainline and Line 9 pipelines.

The Irving Refinery in Saint John, New Brunswick, has no pipeline connection; thus, it must import all supply feedstock by tanker via the Pacific Ocean. Most comes from the U.S., but historically it also imported crude from African or Middle Eastern suppliers.

Western Canadian Refineries Map - CER (2016)

Eastern Canadian Refineries Map - CER (2016)

#3 - How Much Foreign Oil Does Canada Import?

Canada spends tens of billions of dollars annually importing oil despite having one of the world’s largest proven reserves, largely due to a lack of east-west pipeline infrastructure. According to the latest available data, Canada imported nearly $544 billion of foreign oil between 1998 and 2023, a staggering amount, all of which is bought at premium benchmark prices. Historically, New Brunswick has imported the most foreign oil, followed by Quebec and Ontario ^[5].

Central and Eastern refineries account for the vast majority of Canada's oil imports. In 2023, for example, Canada imported an average of 490,000 bpd of oil, totalling $19.5 billion ^[5]. While the U.S. accounts for most of Canada's oil imports, supply has also come from Saudi Arabia, Iraq, Algeria, Nigeria, Angola, Kazakhstan, Russia, Colombia, Norway, the United Kingdom, and others over the past several decades ^[5].

Saskatchewan and Alberta, despite having significant oil reserves, also import lighter oils from the U.S. to use as diluents for heavy crude before shipping it out via pipeline. Bitumen mined from heavy oil operations is too viscous (thick) to ship to buyers in North America; therefore, diluents are required to allow it to flow more easily through pipelines such as Keystone, Trans Mountain, and the Mainline.

#4 - Where Does Canadian Oil Go?

Today, most of Canada’s oil exports ship to the U.S. In 2025, for example, approximately 90.8% of Canada’s total oil exports were shipped south to American buyers, accounting for more than 63% of U.S. crude oil imports ^[6]. However, with the Trans Mountain Expansion, further capacity additions, and a potential new West Coast oil pipeline, that figure could drop significantly, to less than 70% according to Prime Minister Mark Carney.

A majority of Canada’s oil exports go to PADD II in the U.S. Midwest ^[4] and are primarily transported by the Keystone pipeline system, Enbridge’s Mainline, and the Express Pipeline. The most recent data show that PADD II accounted for 2.13 million bpd of Canadian oil exports (2020), while PADD III, the U.S. Gulf Coast, came in second with 0.73 million bpd ^[4].

Together, PADD II and PADD III have dozens of refineries that can process millions of barrels per day. Heavy oil is a preferred feedstock for many U.S. Midwest and Gulf Coast refiners who have invested billions of dollars over the past several years to process additional volumes of heavy crudes.

PADD IV (Rocky Mountains) and V (West Coast) also receive Canadian oil but can’t source as much as other U.S. regions because of limited transportation capacity. Trans Mountain and rail are the primary export conduits to these regions.

Canadian oil is also shipped to other international buyers through the Port of Vancouver and the U.S. Gulf Coast. Since the opening of the Trans Mountain Expansion, more than half of ocean-bound exports have been shipped to Asia, primarily to China and South Korea ^[7].

Canada’s Atlantic offshore oil production is largely exported to buyers in Europe and the U.S., while smaller segments are used domestically in regional refineries.

#5 - What Would Happen if Canadian Refineries Shut Down?

Businesses and industries that rely on domestic refinery production would feel the ripple effect immediately. Direct and indirect job losses would result, and tens of thousands of Canadians would lose their means of earning a living and providing for their families. Tens of billions of dollars in economic activity would also be lost, broadly affecting families across the country.

All of a sudden, the oil products mentioned above – gasoline, jet fuel, plastics, cosmetics, textiles, electronics, sporting goods, medical supplies, etc. – would become more expensive due to increased import and supply chain costs. Governments would have less revenue to spend on healthcare, education, and social programs (to name just a few).

Shutting Down Line 5 Pipeline

Michigan’s continued push to shut down Line 5, a pipeline that transports about 540,000 barrels of product each day from Wisconsin through Michigan to Ontario ^[9], is another prime example of the importance of domestic refineries in Canada. The mayor of Sarnia, a petrochemical and refining hub in Southern Ontario, says there could be at least 5,000 job losses if Michigan succeeds in shutting down the pipeline.

According to the Canadian Fuels Association, Ontario and Quebec refineries would face significant supply shortages. No viable alternatives to replace the lost supply of light oil and natural gas liquids that heat homes and businesses, fuel vehicles, and power industry would be immediately available either.

Canada clearly needs a new east-west pipeline. With the announcement of the Northern Shield Energy Corridor, Canada might finally get the pipeline it needs to help provide energy security for eastern provinces that currently rely on foreign oil imports.

#6 - What are the Economic Benefits of Canada’s Refining Industry?

Here are some of the latest figures from the Canadian Fuels Association regarding the economic contribution of the refining industry ^[10]:

> $6.7 billion – added to the economy by the refining sector Canada-wide

> $320 million – amount of generated provincial and federal tax revenues

> 18,000 – number of people employed directly or indirectly by the refining industry

> $300,000 – value added to the economy for each worker employed by the sector, third place behind oil and gas extraction and mining and much higher than the national average of $77,000

> 1,600 – number of suppliers in the supply chain supported by the refining industry

> $550 million – value in feedstock for the chemical, plastic and rubber industries accounted for by refineries in Canada

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Canadian refineries provide us with the components needed to make thousands of the day-to-day products we all rely on. Smartphones, computers, televisions, gasoline, jet fuel, motor vehicles, rubber, plastics, refrigerators, heart valves, prescriptions, contact lenses, shampoo, toothpaste, and hearing aids are just the tip of the iceberg of products derived from oil.

All Canadians should appreciate and be grateful for the role refineries play in our contemporary lifestyle, and support the men and women who work hard in this industry every day to make that happen!

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