Trans Mountain Pipeline Project Gets Green Light for Route Change

The Canada Energy Regulator (CER) on Monday approved a route change for the Trans Mountain Pipeline Expansion Project (TMX), preventing a lengthy delay in the project's completion.

On August 10, the government-owned Trans Mountain Corporation (TMC) (Calgary, Alberta) submitted an application to revise the route and method of construction for a 1.3-kilometer (0.8-mile) section of the pipeline route, in the Pípsell (Jacko Lake) area near Kamloops, British Columbia.

"The company indicated that it had encountered significant technical challenges while attempting to complete micro-tunnelling along the previously approved route," the CER said. "In response to these issues, Trans Mountain proposed a combined approach of horizontal directional drilling and conventional open trenching along the revised route."

The oil pipeline extension is scheduled to begin operating in the first quarter of 2024. Failure to make the sought-for changes could push back the completion date by several months, according to TMC.

The Stk'emlúpsemc te Secwépemc Nation (SSN) opposed the route change on its land, as the area holds "profound spiritual and cultural significance."

The CER made its decision after holding a three-day hearing in Calgary. The CER said it would issue its reasons for the decision in the coming weeks.

Following the decision, TMC said it "is committed to meaningful engagement and effective relationships with indigenous communities all along the pipeline expansion corridor. We recognize the Pípsell area is of sacred importance to SSN and are committed to remaining respectful of the spiritual and cultural significance of this land. We greatly value our partnership with SSN."

The C$30.9 billion (US$22.8 billion) project will increase the capacity of the pipeline from about 300,000 barrels per day (BBL/d) to 890,000 BBL/d. The expansion is essentially a twinning of the existing 1,150-kilometer (715-mile) pipeline between Strathcona County (near Edmonton), Alberta and Burnaby, British Columbia, according to TMC. The existing pipeline will carry refined products, synthetic crude oils and light crude oils with the capability for heavy crude oils, while the new pipeline will carry heavier oils with the capability of transporting light crude oils.

Industrial Info is tracking 35 active projects that are tied to the pipeline expansion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for a list of detailed project reports.

The expansion project will "help make sure Canada gets full value for its oil," according to TMC's website."

Currently, nearly all the oil produced in Western Canada goes to one market, the United States Midwest," according to TMC. "However, there's a limit to how much oil this market needs. For much of the last decade, Canada has been selling into the United States at a discount to the world price for similar oil products."

Canada's oil "will fetch a better price if we give ourselves the option of shipping more of it via Trans Mountain's Pacific tidewater terminal in Burrard Inlet," and from there shipping it to Asia-Pacific countries, according to TMC.

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