Canada's Imports from Saudi Arabia: Energy and Petrochemical Dominance
Canada's trade with Saudi Arabia is overwhelmingly concentrated in energy and petrochemical products, reflecting Saudi Arabia's role as a global hydrocarbon supplier and Canada's refining/petrochemical integration.
2021 Import Profile (Latest Detailed Data)
| Product Category | Value (CAD) | Share |
|---|
| Crude petroleum | $2.5 billion | ~52% |
| Distillates (diesel, heating oil, etc.) | $1.3 billion | ~27% |
| Asphalt and bitumen | $568 million | ~12% |
| Polymers of ethylene | $374 million | ~8% |
| Petroleum coke | $274 million | ~6% |
| Total (top 5) | $5.0B | ~105%* |
*Over 100% due to rounding and minor categories not listed.
Structural Context
- Eastern refineries (Irving, Suncor, Valero in Quebec/NB) process imported crude—pipeline constraints limit Western Canadian Select access.
- Saudi crude (Arab Light/Medium) suits eastern refinery configurations.
- Petrochemical integration: Ethylene polymers feed Ontario/Quebec plastics manufacturing.
- Asphalt: Road construction, roofing—seasonal demand peaks.
Trends and Shifts
- Declining volumes: 2018: $4.2B crude alone; 2021: $2.5B. Trans Mountain expansion (2024), Line 3 replacement improve western access.
- Diplomatic tension: 2018 Saudi expulsion of Canadian ambassador froze new trade/investment; existing contracts continued.
- Energy transition: Long-term demand decline anticipated; Canadian refineries exploring bio-feedstocks, carbon capture.
Beyond Hydrocarbons
Minor imports: dates, fertilizers, aluminum, specialized chemicals. Services (Saudi students in Canada, pilgrimage travel) not captured in goods data. Total bilateral trade ~$5.5B (2021)—modest for G20 partners.
Wanderlust World