Trans Mountain launches bidding process to add capacity

Canada's Trans Mountain pipeline ships oil from Alberta to British Columbia’s west coast. THE CANADIAN PRESS/Jason Franson

Canada’s Trans Mountain launched a bidding process on Wednesday to secure incremental firm transportation contracts on its pipeline system.

The Open Season, the process to formally gauge commercial interest in potential projects to increase the system’s capacity, will run from April 7 to June 2.

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The Open Season is expected to result in 80 per cent to 90 per cent of its 890,000 barrels per day (bpd) pipeline system being under contract, covering shipments between Edmonton, Alta. and delivery locations in British Columbia, the company said.

The Trans Mountain pipeline, which is owned by the Canadian government, ships oil from the province of Alberta to British Columbia’s west coast, where it can be shipped to overseas markets including China.

The company intends to file an application with the Canada Energy Regulator for the required approvals.

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Trans Mountain said it plans more such processes over the next year, with future projects expected to increase throughput by about 90,000 bpd by early 2027. Its Mainline Optimization Project is expected to add 210,000 bpd by the end of 2028, the company added.

The projects would lift total pipeline capacity to about 1,190,000 bpd from roughly 890,000 bpd currently, Trans Mountain said.

(Reporting by Katha Kalia in Bengaluru; Editing by Leroy Leo)