Trans Mountain Expands Pipeline Capacity Amid Growing Export Demand
Trans Mountain Corp. is preparing for a series of expansion projects to increase the capacity of its main pipeline, which already operates near full capacity. The government-owned company plans to introduce chemicals into the pipeline by the first quarter of 2027 to boost crude oil flow, adding 90,000 barrels per day. Jason Balasch, vice president of business development, announced this at a conference in Calgary. The pipeline, which runs from Alberta to Vancouver, is expected to reach 1.19 million barrels per day by the end of the decade, following a $34 billion expansion project completed in 2024.
A key expansion involves dredging under the Second Narrows Bridge, with a final investment decision expected this summer. This project, starting in the fall, will allow each oil tanker to transport more crude, increasing shipping capacity by 30% as early as the second quarter of 2027. Additionally, almost a dozen pump stations will be added, along with 30 kilometers of new pipe and electric power upgrades in British Columbia, with completion expected by 2029. Another project will add 35,000 barrels per day to a line running into Washington state by the same year.
Despite high construction costs, the pipeline has enabled Canadian oilsands producers to sell significant volumes to Asia, reducing dependence on the United States. Currently, 60% of crude exported via Trans Mountain is destined for Asia. The ongoing war in the Middle East and U.S. military action in Venezuela have further increased the pipeline's strategic value. Susan Bell, senior vice-president of downstream research at Rystad Energy, noted that crude export volumes will exceed pipeline space by this summer and consistently do so by summer 2025.
Trans Mountain has faced challenges, including high costs for non-contracted space, which led to underutilization. However, utilization spiked to 96% in November, according to Canada Energy Regulator data. The company returned $1.7 billion to the Canadian government last year, partly in dividends. A recent dip in shipping was attributed to a mechanical issue with the Second Narrows bridge, which delayed three tankers and pushed about 60,000 barrels per day of oil into this month.