How Many Crude Oil Refineries In Canada? Fewer Than Expected
Canada has 15 active crude oil refineries as of 2025-2026, a surprisingly small number given the country's status as the world's fourth-largest oil producer. These refineries are unevenly distributed across provinces, with the majority concentrated in Alberta, Ontario, and Quebec, and they collectively process roughly 1.9 million barrels of crude oil per day.
Breakdown of Canadian Refineries
The total count of Canadian oil refineries includes facilities that process crude oil into gasoline, diesel, jet fuel, and other petroleum products. Despite Canada's vast oil reserves, refining capacity has remained relatively flat over the past two decades due to economic and environmental constraints.
- Alberta: 5 refineries (largest refining hub, tied to oil sands production).
- Ontario: 4 refineries (serves central Canadian demand).
- Quebec: 2 refineries (strategically located near eastern markets).
- British Columbia: 2 refineries (serves Pacific coast demand).
- New Brunswick: 1 refinery (Canada's largest single refinery).
- Newfoundland and Labrador: 1 refinery (Come By Chance facility).
These facilities form the backbone of the domestic fuel supply, ensuring energy availability across a geographically vast country with diverse regional needs.
Largest Refineries in Canada
The scale of refining capacity in Canada varies significantly by facility, with a handful of major refineries accounting for a large share of total output. The Irving Oil Refinery in Saint John, New Brunswick, stands out as the largest in the country.
| Refinery Name | Location | Operator | Capacity (barrels/day) |
|---|---|---|---|
| Irving Oil Refinery | Saint John, NB | Irving Oil | 320,000 |
| Suncor Edmonton | Edmonton, AB | Suncor Energy | 142,000 |
| Shell Scotford | Fort Saskatchewan, AB | Shell Canada | 100,000+ |
| Valero Quebec | Lévis, QC | Valero Energy | 265,000 |
| Parkland Burnaby | Burnaby, BC | Parkland Corp. | 55,000 |
The Irving refinery complex alone exports a significant portion of its output to the United States, highlighting Canada's integration with North American energy markets.
Why Canada Has So Few Refineries
Despite being a major oil producer, Canada maintains relatively limited refining infrastructure. This mismatch between production and refining is shaped by several structural factors that have persisted since the 1980s.
- High capital costs: Building a new refinery can exceed $10 billion CAD, discouraging investment.
- Regulatory hurdles: Environmental assessments and permitting processes often take 5-10 years.
- Market proximity: Many Canadian crude exports are shipped to U.S. refineries optimized for heavy oil.
- Demand constraints: Domestic fuel demand growth has plateaued since 2019.
- Operational efficiency: Existing refineries have expanded capacity instead of new builds.
Energy economist Laura Chen noted in a 2024 report that
"Canada's refining sector has evolved toward optimization rather than expansion, with operators preferring incremental upgrades over greenfield projects."This reflects a broader trend in the global refining industry.
Historical Trends in Refinery Numbers
The number of operational refineries in Canada has declined over time due to consolidation and closures. In 1980, Canada had more than 40 refineries; by 2000, that number had dropped to around 20.
Key closures include the Shell Montreal refinery conversion to a terminal in 2010 and the Dartmouth refinery shutdown in 2013. These closures were driven by aging infrastructure and shifting economics.
- 1980: ~40 refineries nationwide.
- 2000: ~20 refineries after consolidation.
- 2015: 17 refineries.
- 2025: 15 active refineries.
This steady decline underscores how refining consolidation trends have reshaped Canada's downstream oil sector.
Regional Dependence and Imports
Canada's limited refining capacity creates regional imbalances in fuel supply logistics. Eastern Canada, for example, still imports a portion of its crude oil and refined products despite national production surpluses.
In 2023, approximately 40% of crude processed in Quebec refineries was imported from the United States and overseas, according to Natural Resources Canada. This reflects pipeline constraints and the geographic divide between western oil production and eastern consumption centers.
The Trans Mountain pipeline expansion, completed in 2024, is expected to improve west-to-coast distribution, but its impact on refinery construction remains uncertain.
Future of Refining in Canada
The outlook for Canadian refinery expansion remains cautious. Industry analysts widely agree that no major new refinery projects are likely before 2035 due to energy transition pressures and decarbonization policies.
- Refineries are investing in renewable diesel and biofuels.
- Carbon capture technology is being integrated into existing facilities.
- Electrification of transport is expected to reduce long-term fuel demand.
Suncor Energy stated in its 2025 investor briefing that
"future capital allocation will prioritize emissions reduction and efficiency upgrades rather than new refining builds."This signals a shift in the energy transition strategy across Canada's oil sector.
Frequently Asked Questions
Helpful tips and tricks for How Many Crude Oil Refineries In Canada
How many crude oil refineries are in Canada?
Canada has 15 active crude oil refineries as of 2025, with a combined processing capacity of about 1.9 million barrels per day.
Where are most Canadian refineries located?
Most refineries are located in Alberta, Ontario, and Quebec, as these regions balance proximity to crude supply and population demand centers.
What is the largest refinery in Canada?
The Irving Oil Refinery in Saint John, New Brunswick, is the largest, with a capacity of approximately 320,000 barrels per day.
Why doesn't Canada build more refineries?
High construction costs, strict environmental regulations, and stable demand have discouraged new refinery projects in Canada.
Does Canada import refined fuel?
Yes, particularly in Eastern Canada, where logistical constraints make it more economical to import some refined petroleum products.
Is Canada's refinery count decreasing?
Yes, the number of refineries has declined significantly since the 1980s due to consolidation, closures, and efficiency improvements.