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Trans Mountain says projects could expand pipeline capacity by 300,000 bpd
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Trans Mountain says projects could expand pipeline capacity by 300,000 bpd
Feb 6, 2025 4:22 PM

By Arathy Somasekhar and Georgina McCartney

Feb 6 (Reuters) - 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

company vice president, 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 since U.S. President Donald Trump said his

country would slap 10% tariffs on Canadian oil imports. Trump on

Monday paused the oil tariff -- and others that he said he would

impose on Canada and Mexico -- for 30 days.

The pipeline has offered a way for Canadian oil

producers to sell to international markets without relying on

the U.S. network of pipelines. The pipeline currently accounts

for 9% of Canada's total crude exports.

Trans Mountain is exploring short-term options, including

using a drag-reducing agent in its pipeline to boost the flows

and longer-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

said.

Trans Mountain should be able to load a total of 28-30

tankers per month at Vancouver once port restrictions ease to

allow nighttime 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.

The company was also receiving increased inquiries from new

potential shippers since the tariff threats, Balasch said,

adding that utilization on the pipeline had been rising even

before Trump's announcement.

"I think there's a lot of Asian markets that we could

access," Balasch said. "Our system isn't full and we're

confident we can operate it to it's maximum."

The Canadian government, which owns Trans Mountain, has

been supportive of expansions, Balasch added.

The company has been laying the groundwork for the

expansion since before and the "tariff has just increased the

brightness of that spot," Balasch said.

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