Trans Mountain Corporation is exploring upgrades that could increase the capacity of its pipeline by as much as 300,000 barrels per day (bpd), according to Jason Balasch, Vice President of Business Development and Commercial Services at Trans Mountain. However, the company is not considering the addition of a third pipeline, Balasch clarified.
Currently, the Trans Mountain pipeline can carry 890,000 bpd of crude and refined products from Alberta to the Pacific Coast. The company is investigating ways to further enhance capacity, including the use of drag-reducing agents and the installation of more pumps to improve flow, Balasch said at an oil industry conference in Houston, Texas.
The pipeline recently completed a major expansion after years of delays. The upgrade tripled its capacity, increasing it from 300,000 bpd to 890,000 bpd, allowing it to transport crude from Alberta’s oil sands to British Columbia. The expanded pipeline offers Canadian producers better access to international markets, including the U.S. West Coast and Asia.
The expansion comes at a crucial time for Canadian oil producers, who face potential tariffs on their energy exports to the U.S. President Trump has threatened a 10% levy, creating uncertainty in the North American oil market.
Balasch pointed out that the pipeline system has the potential to access a range of Asian markets, noting that it is not yet operating at full capacity. “Our system isn’t full, and we’re confident we can operate it to its maximum,” he said.
Following the tariff threats, Trans Mountain Corporation has seen a rise in inquiries from potential new shippers, Balasch added. Pipeline utilization was already increasing before Trump’s administration, and the trend is expected to continue.
Trans Mountain also anticipates a further boost in utilization when the Port of Vancouver completes upgrades to its navigation systems. These changes will allow tankers to operate at night, a move expected to take effect in the third quarter of this year. This will facilitate more shipments of Canadian oil to overseas markets.
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