Trans Mountain Pipeline Hits Full Capacity as Global Turmoil Drives Demand

The Trans Mountain pipeline in Canada has finally reached its full capacity of 890,000 barrels per day two years after a major expansion. However, due to ongoing global turmoil, predicting future capacity rates is challenging, said Jason Balasch, vice president of business development for Trans Mountain.

In June, the pipeline was at apportionment, meaning that shipper demand for spot capacity exceeded what was available. This increased demand is partly driven by the uncertainty in global crude markets and the disruption to the Strait of Hormuz, which has led to a higher demand for Canadian oil from Asian markets.

The Trans Mountain system, owned by the Canadian government, was only about 84% full as recently as last summer. But with the completion of the expansion, Canadian heavy crude prices have improved sharply since 2024, tripling the pipeline's capacity.

In the long term, Trans Mountain plans to add 300,000 barrels per day of capacity through optimization projects by the end of 2028. Alberta is also exploring a new 1-million-barrel-per-day pipeline to increase exports to Asia, but no private company has committed to this effort yet.