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4mo ago

Trans Mountain to Pay Ottawa $1.25 Billion in 2025 Following Record Flows

Trans Mountain is piloting friction-reducing chemical additives to increase its throughput beyond the 890,000-barrel-a-day limit.

Crude oil tankers docked at the Trans Mountain Westridge Marine Terminal in June, 2024. The expanded pipeline system began commercial operations over a year ago.
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Workers lay pipe during construction of the Trans Mountain pipeline expansion on farmland, in Abbotsford, B.C., on Wednesday, May 3, 2023.
Kilometre Zero of the Trans Mountain pipeline system at Edmonton Terminal located in Sherwood Park.

Overview

  • Trans Mountain expects to pay $1.25 billion to the federal government this year, driven by a refinancing deal and record first-quarter shipments averaging 757,000 barrels per day.
  • The line operated at about 85 percent of its 890,000-barrel-a-day capacity in Q1, peaking at 90 percent in March.
  • Adjusted EBITDA rose to $568 million in the first quarter from $36 million a year earlier, and $311 million was transferred to parent Canada TMP Finance Ltd.
  • It plans to have the additive project in service by the end of 2026 and is exploring pump horsepower upgrades that could lift capacity to roughly 1.13 million barrels per day.
  • A planned sale of Trans Mountain remains on hold until optimization projects advance and toll disputes before the Canada Energy Regulator are resolved.