Trans Mountain Pipeline Expansion to Boost Capacity by 10% in 2027

Trans Mountain Corp., a government-owned company, is planning to expand its pipeline capacity by adding chemicals that will allow crude oil to flow faster. This move comes as export space out of western Canada becomes tight once again.

The expansion project will add 90,000 barrels a day to the system running from Alberta to the Vancouver area by early next year. The company's main pipeline has a capacity of 890,000 barrels a day and is currently operating at around 96% capacity.

Trans Mountain plans to increase its capacity to 1.19 million barrels a day by 2029 through a series of expansion projects. A final investment decision on a project to dredge under the Second Narrows Bridge is expected by this summer, which will allow each oil tanker to transport more crude.

The company's CEO noted that despite the high cost to build it, the Trans Mountain pipeline has allowed Canada's oilsands producers to sell significant volumes to Asia for the first time, helping to lower the country's dependence on the United States. The ongoing war in the Middle East and U.S. military action on Venezuela have only made the pipeline more valuable.