The expansion of Canada’s government-owned Trans Mountain pipeline assumes greater importance for the oil sector after the cancellation of rival Keystone XL reduced future options to carry crude.
Trans Mountain Corp, a government corporation, is spending C$12.6 billion ($9.9 billion) to nearly triple capacity to 890,000 bpd, a 14 percent increase from current total Canadian capacity.
Prime minister Justin Trudeau’s government bought the 68-year-old pipeline in 2018 when previous owner Kinder Morgan faced legal hurdles to expand the 1,150-kilometer (715-mile) line running from Alberta to the British Columbia coast. Ottawa has always said it would find new owners.
Trans Mountain has completed 22 percent of the expansion project, called TMX, which is scheduled for service in December 2022. Suncor Energy Inc, Canadian Natural Resources Ltd and BP PLC are among the committed shippers who have secured 80 percent of its additional capacity long-term.
For more information visit www.transmountain.com