June 12 (Reuters) - Twenty-two oil tankers are scheduled
to load this month in Vancouver with crude from the expanded
Trans Mountain pipeline, which is running around 80% full with a
"little bit" of spot capacity also being used, a Trans Mountain
executive said on Wednesday.
Speaking with Reuters six weeks after the C$34.2 billion
($24.94 billion) project started commercial operations, Trans
Mountain Corp's chief financial and strategy officer Mark Maki
said so far the system is operating as expected and final costs
for the expansion are not expected to rise significantly.
The Trans Mountain expansion, which tripled pipeline
capacity from Alberta to Canada's Pacific Coast to 890,000
barrels per day (bpd) started commercial operations on May 1 and
traders are closely watching flows to gauge demand.
Eighty percent, or 707,000 bpd, of the pipeline's capacity
is reserved for long-term contracted shippers, while the
remaining 20% is available to spot barrels.
"We're basically running at effectively right around
contract level with a little bit of spot on the system," Maki
said, adding that volumes were expected to rise towards winter.
Maki said there were 22 tankers scheduled to load at
Westridge dock, the pipeline's terminus in the Port of
Vancouver, in June.
Traders and shipping sources had been concerned that
logistical constraints at the port could limit tanker loadings
at Westridge to less than 20 a month.
So far the marine facility is performing well, Maki added,
although the company had to work through some start-up issues on
one piece of equipment known as a vapor recovery unit, which
removes unwanted vapors from crude.
"The dock facility is working as we'd expected. There are a
few things of course you've got to break in and get running
right, but we're happy with where we're at," Maki said.
The pipeline is owned by the Canadian government, which has
been criticized for the cost of the expansion ballooning to
nearly five times its 2017 budget estimate.
Maki said post-construction remediation work is still
ongoing but Trans Mountain Corp would have a final cost in place
by the end of this year and it would likely be "very, very
close" to C$34 billion dollars.
He also said it was unlikely Trans Mountain would need to
further increase a C$19 billion loan facility agreed with a
syndicate of commercial banks and guaranteed by the Canadian
government, unless it was for a transitory purpose like issuing
bonds.
"If we do it would probably be transitory and not a
particularly large increase," Maki said.