Canadian pipeline operator Trans Mountain is looking at expansion projects in the short and long terms that could add between 200,000 and 300,000 barrels per day (bpd) of capacity to the company’s system, Jason Balasch, a vice president at the firm, said on Thursday.
The pipeline, which can currently carry up to 890,000 bpd of crude from Alberta to Canada’s Pacific Coast for export, has been in the spotlight after U.S. President Donald Trump said his country would slap 10 per cent tariffs on Canadian oil imports.
The line has offered a way for Canadian oil producers to sell to international markets without relying on the U.S. extensive network of pipelines. The pipeline currently accounts for 9% of Canada’s total crude exports.
Get breaking National news
For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.
Trans Mountain is exploring short-term options, including using a drag reducing agent in its pipeline to boost the flows and other long-term solutions like adding pumps, Balasch said on the sidelines of an oil conference in Houston.
The company is not looking to add a third line, Balasch added.
Trans Mountain should be able to load a total of 28-30 tankers per month at Vancouver once port restrictions ease to allow night time transit, which is expected in the third quarter, he added.
The Port of Vancouver is in the process of installing navigation aids. When fully operational, the upgrades will allow shippers to bring inbound unladen Aframax vessels at night, easing previous daylight-only transit restrictions that have limited Trans Mountain’s loadings.
Trans Mountain has so far loaded a maximum of 24 Aframax vessels per month. Aframaxes typically transport up to 800,000 barrels, but at the company’s Westridge marine terminal they are limited to loading around 550,000 barrels because of draft restrictions.
—Reporting by Arathy Somasekhar in Houston; Editing by Leslie Adler and Alistair Bell
