Name of the Project
Trans Mountain pipeline expansion project.

Location
The pipeline will run between Strathcona County (near Edmonton), Alberta and Burnaby in British Columbia, Canada.

Client
Kinder Morgan.

Project Description
The original Trans Mountain pipeline was built in 1953 and continues to operate. The project proposes a 980 km expansion of this 1 150 km pipeline. The expansion, if approved, will create a twinned pipeline that will increase the nominal capacity of the system from 300 000 bbl/d to 890 000 bbl/d.

The existing line will carry refined products and synthetic and light crude oils, with capability to carry heavy crude oils.

About 73% of the proposed route will use the existing right of way; 16% will follow other linear infrastructure, such as TELUS, hydro or highways; and 11% will be new right-of-way infrastructure.

The project includes the reactivation of 193 km of pipeline; the construction of 12 new pumpstations; the addition of 20 new tanks to the existing storage terminals in Burnaby (14), Sumas (1) and Edmonton (5); and the expansion of the Westridge marine terminal by three berths.

Jobs to be Created
British Columbians will be first in line for jobs at the project, which entails more than 75 000 person-years of employment. It will also boost the province's gross domestic product by C$19.1-billion during construction and operations over 20 years and generate more than $2.2-billion in tax revenue for provincial and local governments.

Value
The project is expected to cost about $6.8-billion.

Duration
The project is expected to begin construction this year and brought into service in 2019.

Latest Developments
British Columbia has issued an environment assessment certificate for Kinder Morgan’s Trans Mountain expansion project, adding its own 37 specific conditions.

These conditions are based on the National Energy Board's (NEB's) project report on May 19, 2016, recommending to the federal government that the project be approved, subject to 157 conditions, the consideration of additional information and Aboriginal consultation.

British Columbia's position has been consistent over the past four-and-a-half years; any heavy oil project must meet the province’s five conditions, including receipt of regulatory approvals, world-leading marine-spill land-spill responses, indigenous participation, and a fair share of benefits for British Columbia.

“The five conditions is an articulation of the way we do business in British Columbia. We set the bar high to stand up for British Columbia to protect our coast and environment, ensure opportunities for First Nations' participation and secure a fair share of economic benefits for all British Columbians,” Liberal Premier Christy Clark has said.

The federal government, under Prime Minister Justin Trudeau, approved the project in November 2016, which will match the existing 1953-built Trans Mountain pipeline system between Edmonton, Alberta, and Burnaby,  in British Columbia. This is expected to triple Canada’s access to new crude markets, as the country looks to diversify oil exports away from the US, its largest customer.

The provincial government has also achieved an "unprecedented agreement" with Kinder Morgan to receive a significant investment worth up to C$1-billion. The company will pay the province between C$25-million and C$50-million a year for 20 years – the first time in the province that a company will share revenue from a large industrial project directly with government.

The revenues will be directed to a new 'clean communities' programme through which communities can apply yearly for grants to invest in protecting and enhancing British Columbia's environment.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kinder Morgan, tel + 1 855 908 9734 or email media@transmountain.com.
Trans Mountain, tel 1 866 514 6700 or email info@transmountain.com.