Trans Mountain, the Crown corporation behind the completed Trans Mountain expansion oil pipeline, is exploring methods to boost oil export capabilities despite the pipeline currently operating below full capacity.
Initially transporting oil from Edmonton to Vancouver since May 2024, the $34 billion expansion is running at 80-85% capacity. The corporation had planned to consider capacity increases in 2028 but accelerated plans due to rising oil production in Alberta.
While the pipeline’s physical size remains unchanged, Trans Mountain is evaluating two approaches for augmenting oil transport. The first involves the use of drag reducing agents, expected to yield a 5-10% capacity increase, adding 50,000-85,000 extra barrels daily. The second method entails constructing stronger pumping stations, a pricier endeavor costing $3-4 billion, with further assessments and decision-making slated for the coming years.
Trans Mountain’s chief financial officer, Todd Stack, expressed confidence in funding the optimization projects through operational profits or debt, pending federal approval. The pipeline, set at 890,000 barrels total capacity, is forecasted to return $1.25 billion to Ottawa by year-end.
Notably, the expansion has been deemed successful, with operations running smoothly. However, the export terminal in Burnaby, B.C., currently underutilizes its capacity of 34 tankers monthly, loading only around 23 vessels due to inlet depth constraints.
Rising oilsands production in northern Alberta is driving oil growth, with no major new facilities underway but numerous expansions by various companies. Without optimization efforts, potential export restrictions loom by mid-2027, prompting pipeline companies like Trans Mountain to enhance operations for sustained export capacity until 2030.
According to industry experts, the completion of the Trans Mountain expansion has significantly bolstered western Canadian crude oil export capacity and decreased crude-by-rail exports. Recent data shows substantial increases in oil pipeline shipments from Alberta to British Columbia following the expanded Trans Mountain project.
