Trans Mountain Pipeline Could Accommodate More Crude Oil

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

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Summary

Expanded in 2024, the Trans Mountain crude oil pipeline is looking to accept more throughput. It's the only Canadian pipeline able to deliver oil outside of North America.

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More Oil by Next Year

Planning is underway to boost capacity of the Trans Mountain crude oil pipeline to the Pacific Coast by 300,000 barrels per day, the company's chief executive officer said.

Industrial Info Resources data find Trans Mountain running some 720 miles from Alberta to the Pacific Coast. It's the only network in Canada capable of delivering crude oil outside North America.

Mark Maki, the company's chief executive officer, said Trans Mountain is integral to getting Canadian crude oil on the global market, and plans are underway to increase the pipeline's capacity by 300,000 barrels per day (bpd).

"The first 90,000 (barrels per day) is anticipated to be in service early in 2027," he was quoted Thursday by The Canadian Press as saying.

An expansion project completed in 2024 nearly tripled the capacity on the pipeline system to a total of 890,000 bpd. Maki said the pipeline was only running at around 737,000 bpd during the first quarter, however, down about 2.6% year-on-year.

The company attributed the decline to "temporary market factors, including lower customer demand due to higher freight rates, as well as Trans Mountain's customers undertaking maintenance operations and third-party disruptions."

Maki said there would be an open season on the increased capacity on Trans Mountain possibly later this year. While Trans Mountain can deliver oil outside North America, Canada remains the top crude oil exporter to the United States. At around 4 million bpd, Canadian crude accounts for 60% of foreign imports.

Trade Diversity a Canadian Priority

The Pacific Coast, however, is emerging as something of a showcase for efforts by Canadian Prime Minister Mark Carney to cut U.S. trade in half. The LNG Canada facility is currently the only one of its kind that can deliver super-cooled gas from the west coast of North America, while the Ksi Lisims project is close behind.

Elsewhere on the Atlantic, Finance Minister Francois-Philippe Champagne recently touted the energy potential in Newfoundland and Labrador. "As a clean and conventional energy superpower, Canada has what the world needs," he said from the provincial capital of St. John.

The Canada-Newfoundland and Labrador Offshore Energy Regulator (C-NLOER) said it received the Development Plan Application (DPA) earlier this year for Bay Du Nord, an offshore development. According to Industrial Info Resources data, Norwegian energy company Equinor plans for 40 development wells at five locations in the broader Flemish Pass Basin.

Bay du Nord will eventually have a production capacity of 160,000 bpd, along with as much as 1.2 million barrels in storage on a floating production storage and offloading (FPSO) vessel.

This would be the first deepwater project ever for the Canadian waters of the Atlantic. At least 95% of the material used for subsea components will come from provincial suppliers.

Discovered in 2013, the provincial government estimates the field holds as much as 430 million barrels of oil. Industrial Info Resources data show the entire project has a total investment value of US$12 billion. Bay du Nord is expected to be formally sanctioned by next year, with first oil coming in the early 2030s.

Canada is churning out around 5.4 million bpd on average. But the Canada Energy Regulator reported that only British Columbia and Alberta produced any meaningful amounts of crude oil so far this year.

By the Numbers

• 90,000 bpd more from Trans Mountain possible
• 5.4 million bpd in total Canadian production on average

Key Takeaways

• Coastal developments could stimulate Canadian trade
• More expansions possible on key export artery

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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 validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).