The Trans Mountain oil pipeline system is set to run at full capacity starting in April and continuing into May due to energy disruptions stemming from conflicts in the Middle East. These pipelines transport oil from Edmonton to a terminal in Burnaby, B.C., with a significant portion of the oil exported to China and other Asian nations. The increased demand for energy in Asia, coupled with global supply constraints caused by the conflict, has led to the system operating at maximum capacity sooner than expected.
Trans Mountain’s CEO, Mark Maki, noted that the pipeline system is currently operating at full capacity, a milestone that was initially projected to be reached in a few years. Just a year ago, the pipeline was running at 80 to 90 percent capacity.
Rising energy prices have been observed in recent weeks as Iran’s actions in restricting access to the Strait of Hormuz have impacted global oil exports. Maki mentioned that the market is shifting towards North America as a source of energy, with Asian customers showing keen interest in Canadian oil due to the country’s reputation and the quality of the product.
In the event that the Middle East conflict resolves, it may take several months for energy markets to stabilize. Asian countries have been particularly affected by the energy crisis, with some already facing shortages of oil and natural gas. Shell’s CEO warned that Europe could soon encounter similar disruptions in fuel supplies.
On another front, Trans Mountain is progressing with two expansion projects to enhance oil transportation through the existing pipeline system. The first project involves using drag reducing agents to potentially move up to 10 percent more oil, costing $9 million and slated for completion by January 2027. The second expansion, aiming to increase capacity by 360,000 barrels per day, will involve constructing additional pumping stations. Originally planned for completion by 2029, efforts are underway to expedite the project for a 2028 finish, pending regulatory approval.
The current twin pipeline system has the capacity to transport around 890,000 barrels per day between Alberta and the West Coast.
