The Trans Mountain pipeline will soon be at full capacity amid a global energy crisis
Listen to this article
Average 3 minutes
The audio version of this article was created by AI-based technology. It can be mispronounced. We are working with our partners to continuously review and improve the results.
The Trans Mountain oil pipeline system is expected to be fully operational in April and May due to power disruptions caused by the war in the Middle East.
Two pipelines transport oil from Edmonton to a storage facility in Burnaby, BC
Typically, most oil exports are directed to China and other Asian countries, which now have a growing appetite for energy as global supplies are constrained by the conflict.
The full pipeline system would represent a milestone that Trans Mountain expected to arrive in only a few years. The pipeline has been operating between 80 and 90 percent for the past 12 months.
“The system is full,” said Trans Mountain CEO Mark Maki.
Oil prices rose last month as Iran imposed restrictions on access to the Strait of Hormuz, a bottleneck through which 20 percent of the world’s oil is shipped, in addition to natural gas and other products.
“Conflict takes a while for the market to sink in,” Maki said in an interview with CBC News on the sidelines of the CERAWeek energy conference in Houston. “So, what we’re starting to see now is a shift to North America as a source.”
Asian customers “love Canadian barrels, full stop. They love the country, they love the product that comes from it,” he said.
If the conflict in the Middle East does not end, experts say it could take several months for energy markets to normalize. Asian countries are the most affected by the energy crisis, as some countries are facing a shortage of oil and natural gas.
On Tuesday, Shell CEO Wael Sawan warned that Europe will soon face the same oil supply disruptions that Asia has faced.
Some expansion projects
Meanwhile, Trans Mountain is moving forward with two expansion projects to transport more oil through the existing pipeline system.
The first increase will be the result of using drag-reducing agents with the aim of moving the oil up to 10 percent. The project will cost $9 million, and construction is expected to begin in August and be completed in January 2027.
The second expansion will be more complex and involve the construction of more pumping stations. The original schedule was to complete the work in 2029, but Maki said the Crown corporation is already ordering equipment with the aim of completing the expansion in 2028.
The expansion is expected to increase capacity by another 360,000 barrels per day, although it still needs regulatory approval.
The two pipeline system currently can carry an estimated 890,000 barrels per day between Alberta and the West Coast.
