By March 22, 2017 Read More →

Trans Mountain commitments secured by Kinder Morgan after dip

Trans Mountain

Construction of the Trans Mountain Pipeline expansion is expected to begin in the fall of 2017. Kinder Morgan photo.

Trans Mountain Pipeline commitment fell after Kinder Morgan boosted tolls

Kinder Morgan says it has booked the entire 22,000 barrels per day of capacity offered on its Trans Mountain Pipeline expansion after a dip in shipper commitments earlier this month.

The $6.8 billion pipeline expansion will nearly triple the amount of Alberta crude transported from the landlocked province to tidal waters in British Columbia.

The current Kinder Morgan pipeline is often over-subscribed and the expansion is strongly supported by oilsands shippers.  In November, the Trudeau government approved the expansion plan for Trans Mountain Pipeline, which will bring capacity up to 890,000 b/d.

Despite industry support for the pipeline, commitment for the project had dipped 3 per cent, or 22,000 b/d after the US based pipeline company increased tolls.

But on Wednesday, Kinder Morgan said in a statement that all available long-term capacity on the pipeline has been contracted to 13 customers.

“We’re very pleased with the swift and positive conclusion of this open season, demonstrating the continued strong market support for our project and the much-needed access to new markets it brings to Canadian producers and the secure supply of Canadian crude to refineries throughout the Pacific basin,” said Ian Anderson, president of Kinder Morgan Canada.

Firm shippers have made 15-to-20 year commitments of 707,500 b/d, or about 80 per cent of the expanded line’s capacity.  The remaining 20 per cent is reserved for spot volumes, as required by Canada’s National Energy Board.

The next steps for the pipeline project between Edmonton and Burnaby is arranging financing and a final investment decision by Kinder Morgan.

Construction is set to begin in the fall of 2017, with completion of the pipeline expected in late 2019.

alberta

 

 

Posted in: Canada

Comments are closed.