The Trans Mountain oil pipeline network is set to run at full capacity in April and extending into May due to energy disruptions stemming from the conflict in the Middle East. These pipelines carry oil from Edmonton to a terminal in Burnaby, B.C., with the majority of the exported oil heading to China and other Asian countries. This increased demand from Asia is a result of global energy supplies being constrained by the ongoing conflict.
Achieving full capacity sooner than expected, the Trans Mountain pipeline system was previously operating at 80 to 90 percent capacity just a year ago. Trans Mountain CEO Mark Maki confirmed, “The system’s basically full.”
Energy prices have surged in recent weeks due to Iran’s control over the Strait of Hormuz, a crucial passageway for exporting 20 percent of the world’s oil, as well as natural gas and other products. Maki noted a shift in market dynamics towards North America as a reliable energy source amid the ongoing conflict.
With Asian nations facing energy shortages, there is a growing interest in Canadian oil. Trans Mountain is progressing with expansion projects to increase oil transportation capacity through the existing pipeline system. The first project, costing $9 million, involves utilizing drag reducing agents to potentially move up to 10 percent more oil, with construction set to start in August and finish by January 2027.
The second expansion project is more intricate, necessitating additional pumping stations. Originally planned for completion by 2029, efforts are underway to expedite the project to conclude by 2028. This expansion aims to boost capacity by 360,000 barrels per day, pending regulatory approval.
The twin pipeline system currently has a capacity of around 890,000 barrels per day, with further expansions on the horizon to meet the growing demand for oil transportation.