More Barrels for Trans Mountain Crude Oil Pipeline?

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

The Trans Mountain pipeline is completely full for the first time since an expansion project was completed in 2024. More is possible, but the war in the Middle East is hindering long-term decisions.

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Drag-Reducing Agents to Boost Throughput

More barrels could be moving through the already expanded Trans Mountain crude oil pipeline in Canada, but the fluidity of the situation in the Middle East makes apportionment difficult, the Trans Mountain Corporation said.

An expansion project completed in 2024 nearly tripled the capacity on the pipeline system to a total of 890,000 barrels per day (bpd). Among the few Canadian arteries capable of sending crude oil outside North America, Industrial Info Resources data show Trans Mountain running some 720 miles from Alberta to the Pacific Coast.

Industrial Info Resources offers more information on Trans Mountain in its Global Market Intelligence (GMI) Oil & Gas Pipeline Database, where readers can find details--including construction history, key contacts and necessary equipment--in a detailed pipeline profile.

Planning is underway to boost capacity of the Trans Mountain crude oil pipeline to the Pacific Coast by 300,000 bpd, the company's chief executive officer said. The company is planning to add drag-reducing agents to the network that will help accommodate the extra crude.

The pipeline was running at only about 737,000 barrels per day (bpd) during the first quarter, down about 2.6% year-over-year. The company attributed the decline to "temporary market factors."

A report published Wednesday by Reuters said Trans Mountain was now running at full capacity for the first time since the expansion project was completed. Jason Balasch, a vice president for business development for Trans Mountain, said that volatility in the Middle East made capacity planning difficult, however.

Global trade in crude oil and liquefied natural gas (LNG) remains difficult given the tacit closure of the Strait of Hormuz. Three sailors are dead after the U.S. military fired on a vessel this week, and U.S. President Donald Trump said on social media Thursday that U.S. forces would hit Iran "very hard" and assume control over the Iranian oil and gas industry.

Trump backed off his comments later in the day, saying he had "cancelled the scheduled strikes and bombings."

The U.S. president, meanwhile, is debating the value of a joint Canadian-Mexican trade deal he brokered during his first term in office.

"Prime Minister Carney updated the premiers on ongoing trade talks with U.S. counterparts," a message from his office read Wednesday. "He underscored Canada's new government's commitment to protecting Canadian workers and businesses and providing certainty to investors, and reaffirmed the importance of a united Team Canada approach."

By the Numbers

• 100,000 bpd pipeline under consideration
• 890,000 bpd from Trans Mountain

Energy, Nation-Building Go Hand-in-Hand for Canada

Carney has singled out a handful of projects, from liquefied natural gas (LNG) to small modular nuclear reactors, to help expand Canadian trade options. The U.S. is still Canada's largest trading partner, despite the ongoing hostility from the U.S. president.

Carney, through a handshake with the provincial government of Alberta, is in line behind a new crude oil pipeline to British Columbia that could handle another 1 million bpd for exports, complementing the throughput from Trans Mountain.

The pipeline comes with the caveat that it must accompany a carbon-capture project tentatively named Pathways. Speaking at an energy forum in Calgary earlier this week, Jon McKenzie, the chief executive officer at Cenovus Energy, said he doubted the pipeline would materialize.

"Neither the Pathways project nor the west coast pipeline really make any sense," he was quoted by the Bloomberg news agency as saying Tuesday. No company has formally endorsed the pipeline.

But more than 1,000 delegates from more than 100 countries descended on Calgary this week for the Global Energy Show. Premier Danielle Smith said it's an opportunity to showcase Canadian economic efforts.

"Where energy comes from matters more than ever," she said. "The world is looking for a secure and affordable energy supply from a responsible partner they can rely on, and Alberta is the answer."

Apart from carbon sequestration, the provincial government announced from the sidelines of the energy conference that it would set aside more than US$5.5 million in new projects to help reduce methane emissions. Methane is a potent greenhouse gas that has a warming potential far greater than carbon dioxide.

Key Takeaways

• Trans Mountain is full for the first time in years
• Alberta wants more, but questions surround new pipeline considerations

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).