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.