Trans Mountain Pipeline Running Out of Room Amid Asian Demand
Trans Mountain Corp., the federal Crown corporation that owns Alberta's only pipeline to the Pacific Ocean, wants to reserve more space for companies that sign long-term contracts. The current system is running at full or near full capacity, with 528 tankers loaded since the expanded line opened in May 2024, and 64% of them went to Asia.
The previous round of long-term contracts demonstrated strong demand for transportation service on the line, according to Mark Maki, Trans Mountain's chief executive. The company has asked the Canada Energy Regulator for permission to set aside 90% of the pipeline for shippers with long-term contracts, up from 80%, and is seeking an answer by October 1.
This change would reduce the space left for other companies to about 89,000 barrels a day, down from around 178,000. Trans Mountain has loaded more oil in June than its pipeline could take, the first time that had happened since the line was expanded in 2024, according to Reuters.
The pipeline can carry 890,000 barrels a day, and setting aside 90% is not unusual for a Canadian export line. Alberta gets royalties as a share of what its oil sells for, so barrels that reach the coast are worth more to the provincial treasury than those that cannot get there.