Trans Mountain Settlement Raises Firm Capacity to 90%
Trans Mountain has filed a long-term settlement with Canada's energy regulator that would increase firm pipeline capacity to 90% while supporting up to 300,000 bpd of additional throughput through system optimization.
(P&GJ) — Trans Mountain has filed a negotiated settlement with the Canada Energy Regulator (CER) that would establish a long-term tolling, tariff and service framework for its pipeline system while increasing firm transportation capacity from 80% to 90% of the system's nominal capacity, subject to regulatory approval.
The settlement, reached after approximately 18 months of negotiations with shippers, would resolve all issues before the CER in Proceeding RH-002-2023 and establish long-term commercial terms for both committed and uncommitted shippers. Trans Mountain has requested CER approval by Oct. 1, 2026, with the framework taking effect Jan. 1, 2027.
Chief Executive Officer Mark Maki said the agreement provides greater certainty for both the company and its customers.
"This settlement provides a clear path forward for the Trans Mountain System and its customers, reflecting significant work by all parties to reach a balanced agreement," Maki said.
If approved, the settlement would also support transportation service agreements awarded during the company's 2026 firm contracting open season, which concluded in June. Those contracts were contingent upon approval of the new tolling and service framework.
Trans Mountain said demand for capacity on its expanded pipeline system remains strong, with the line operating at or near full capacity for several consecutive months.
The company also continues work on its Mainline Optimization Program, including drag reducing agent (DRA) installation and other facility upgrades that are expected to add up to 300,000 barrels per day (bpd) of incremental capacity by the end of 2028. The first phase could increase throughput by approximately 90,000 bpd, or about 10%, by the end of this year, pending additional regulatory approvals.
Maki said recent shipper interest reflects continued demand for long-term transportation service.
"With the System running at full or near full capacity for months, our optimization program is focused on increasing capacity on existing infrastructure and providing additional competitive and reliable transportation opportunities for customers," he said.
Trans Mountain plans to hold an open season for the initial incremental capacity from July 13 through Aug. 10, allowing shippers to secure access to the additional transportation capacity expected from the optimization program.