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 Canada (KMC).
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 twin 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.
Potential Job Creation
British Columbians will be considered first 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
Estimates for total construction costs vary. The Parliamentary Budget Office has said the price tag will be about C$9.3-billion. Credit Suisse states in a research note that the project is expected to cost C$7.4-billion to build.
Duration
The project is expected to begin construction this year and to be brought into service in 2020.
Latest Developments
Prime Minister Justin Trudeau’s government is proceeding with the construction of the Trans Mountain pipeline project, saying the project has met strict requirements on safety and in consultation with Canadian indigenous groups.
The National Energy Board has set 156 mandatory measures for the project to move ahead, along with 16 recommendations to lessen the impact of added marine shipping. Government will also take additional steps to respond to the needs of indigenous communities, and will begin the process of making indigenous groups shareholders in the pipeline.
Project Reconciliation, an indigenous group seeking to buy a majority stake in Trans Mountain, has said the organisation will reach out to government very quickly and thinks “it’s very realistic” that a majority stake in the pipeline could be secured this year. Other indigenous groups, including the Alberta-based Iron Coalition, are also seeking to buy stakes in the pipeline.
“We are going to fine-tune our plan here and reach out to other First Nations and continue engaging and moving forward in a very responsible manner”, former chief of Saskatchewan-based Thunderchild First Nation Delbert Wapass has said.
Even with the approval and support from several First Nations, regulatory and political hurdles remain. New lawsuits arising from the decision will place any timelines for project completion in doubt. The government of British Columbia is seeking a separate ruling from the Supreme Court on whether it can restrict oil shipments through the province.
“Although I regret the federal government’s decision, it’s within its authority to make that decision,” British Columbia Premier John Horgan has said. “It’s up to us now to make sure, as this project proceeds, we have no impact on our marine life, on our natural environment.”
The project may also face protests that could disrupt construction.
Stand.Earth international programme director Tzeporah Berman has blasted the decision on economic and environmental grounds, arguing that the expansion will likely only send more Canadian oil to U.S. refineries, rather than developing new markets in Asia.
Another wildcard is the possibility that could lose Trudeau his majority in October. To remain in power, he may need the support of smaller parties that oppose the expansion. Polls show Trudeau is bleeding support to the Green Party in British Columbia, where his Liberals must retain seats to win re-election.
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.