Trans Mountain Pipeline Expansion Faces New Challenges

Overview

• Trans Mountain has requested a variance to install a smaller diameter pipe in a challenging section of the pipeline, which has raised concerns among shippers.
• The Canada Energy Regulator (CER) has approved preliminary interim tolls for the expanded Trans Mountain pipeline system, despite opposition from some shippers.
• The interim benchmark toll is set at $11.46 per barrel, nearly double what Trans Mountain estimated it would be in 2017 due to increased construction costs.
• The final decision on the variance request and the final tolls are yet to be made by the CER.
• The Trans Mountain expansion project, which has faced regulatory delays and cost over-runs, is expected to start operations by the end of the first quarter of 2024.