Latest news with #TransMountainCorp
Winnipeg Free Press
25-06-2025
- Business
- Winnipeg Free Press
Enbridge says it would pitch new Alberta-B.C. pipeline only under right conditions
CALGARY – Canada's biggest crude oil shipper says a lot needs to happen before it would propose a new pipeline to the West Coast. Alberta Premier Danielle Smith has said she wants to see a pipeline running from her province to the Port of Prince Rupert, B.C., so that more oilsands crude can be exported to Asia by tanker. She told a news conference Tuesday that the province has been in 'active conversations' with pipeline companies and is 'pretty close' to having a one or more come forward with a plan. Smith has said the West Coast pipeline she envisions would test the Liberal federal government's new process to review projects deemed in the national interest within two years. Enbridge Inc., which has a massive pipeline network spanning Canada and the United States, says it will always assess market-diversifying projects, provided there is a demand from the producers it serves. It says in a statement that any new project would require careful consideration and real provincial and federal legislative change around carbon policies, regulatory timelines and Indigenous participation. 'We will be there to build what is needed for our shippers, for Alberta and for Canada — that's our job, our mission as a company — but only when the conditions make sense and the right framework is in place,' Enbridge said. The CEO of federally owned pipeline operator Trans Mountain Corp. told reporters earlier this month that his company is among those Smith has spoken to about spearheading a new pipeline. But Mark Maki said 'optimizing the existing kit' is a priority over building something new for now. Monday Mornings The latest local business news and a lookahead to the coming week. Trans Mountain flows to the B.C. Lower Mainland is currently the only way Alberta producers can meaningfully access Asia-Pacific markets. South Bow Corp., which operates the Keystone pipeline connecting Alberta crude to refineries in the U.S. Midwest and Gulf Coast, said in a statement it appreciates provincial and federal recognition of the need for increased pipeline capacity. 'South Bow carefully evaluates all opportunities, especially those that complement our current assets and strengthen our existing corridor.' This report by The Canadian Press was first published June 25, 2025. Companies in this story: (TSX: ENB) (TSX: SOBO)
Bloomberg
11-06-2025
- Business
- Bloomberg
Trans Mountain Eyes Pipeline Capacity Increase by Early 2027
The Trans Mountain pipeline could handle an additional 75,000 barrels of crude a day by a early 2027, the government-owned company's top executive said, potentially helping Canadian oil producers expand shipments to non-US markets. Chemicals that make crude flow more easily through the line could be used in less than two years as a first stage of the capacity increase, Trans Mountain CEO Mark Maki told reporters at a conference in Calgary. After that, increased pumping power could boost flows to about 1.14 million barrels a day, but that would require dredging the nearby waterway to allow tankers to carry more oil.
Hamilton Spectator
31-05-2025
- Business
- Hamilton Spectator
Trans Mountain could take on more pipeline projects if private sector can't: CEO
CALGARY - The CEO of Crown-owned pipeline operator Trans Mountain Corp. says it could take on other market-expanding pipeline projects if necessary, but that it would be preferable for the private sector to take the lead. Trade tumult in recent months with the United States — Canada's biggest customer for its crude oil — has intensified calls for Canada to build infrastructure that would allow its resources to flow to other global buyers. When the expanded Trans Mountain pipeline began shipping Alberta crude to the B.C. Lower Mainland just over a year ago, oilsands producers were finally able to meaningfully access lucrative Asian markets. Trans Mountain CEO Mark Maki said in an interview Friday there's an appetite for more pipeline egress to the Pacific coast and elsewhere. 'The U.S. is a great customer. It will always be a great customer, but diversification of markets for the country is important,' he said. He said Trans Mountain's owner — the Government of Canada — would prefer the private sector lead the way. 'If that can't happen, and it's in the national interest, Trans Mountain is here,' Maki said. His remarks came after Trans Mountain reported its operational and financial results for the first three months of 2025. Since oil started flowing through the expansion in May of last year, 266 crude vessels have been loaded, and third-party information suggests the destinations have been split between the U.S. West Coast and Asia. The expanded pipeline shipped an average of about 757,000 barrels per day during the quarter — below its capacity of 890,000 barrels per day. Maki said if the pipeline were running full, western Canadian heavy crude would see a steeper price discount against the easier-to-refine light crude sold on the global market. That would eat into the margins of Alberta producers. 'You really don't want us 100 per cent full … What's important really is to keep a little bit of slack in the system,' he said. As of now, the supply of crude hasn't caught up with takeaway capacity. 'But when that happens, the crude differential blows out. And so having a little bit of wiggle room is important.' Trans Mountain said there are economical ways to boost the pipeline's capacity if needed, such as adding chemical agents to reduce friction, which would enable more crude to flow through the line. Other options could include adding pumping horsepower or pipe segments. Those projects could together add up to 300,000 barrels per day of capacity. Trans Mountain said quarterly net income was $148 million, down from $158 million a year earlier. Its earnings before interest, taxes, depreciation and amortization — a measure it says reflects the performance of its underlying business — were $568 million, compared to the $36 million it brought in a year earlier, before the pipeline expansion had started up. During the quarter, $311 million was paid to its parent Canada TMP Finance Ltd., which is itself owned by the Canada Development Investment Corp. That consisted of $148 million in interest payments and $163 million in cash dividends. The original Trans Mountain pipeline has been operating since the 1950s. In 2013, U.S. energy company Kinder Morgan filed a proposal to expand it at a cost of $5.4 billion, touching off a contentious regulatory review process marked by protests and legal challenges. Kinder Morgan suspended work in 2018 and shortly thereafter sold the pipeline to the federal government for $4.5 billion. By the time the expansion project was completed, its cost had ballooned to $34 billion. Maki said there's no hurry to bring Trans Mountain back into private hands. He said the expanded pipeline should get a little more operating history under its belt so a potential buyer can ascribe the proper value to it. A dispute over the tolls customers pay to use the line, currently before the Canada Energy Regulator, also needs to be sorted out, he said. There is also interest in potential Indigenous equity ownership in the line — when the time is right. Trans Mountain is in a 'transitional' year where it is starting to pay dividends and is continuing some of the cleanup work from the pipeline construction. Next year will be a 'much more normal' one, Maki said. 'And so really probably at that point and out would make sense to start thinking about that.' This report by The Canadian Press was first published May 30, 2025.
Calgary Herald
31-05-2025
- Business
- Calgary Herald
Varcoe: Trans Mountain CEO eyes initiatives to increase capacity, hopes to join national projects list
Article content The CEO of Trans Mountain Corp. sees the need to build more pipeline capacity to ship oil to Canada's West Coast for export at some point. Article content Article content Mark Maki doesn't envision the federally owned Crown corporation pitching construction of a new pipeline to the northwest coast of British Columbia, but it is advancing plans that could increase the capacity of its core system. Article content Article content And it comes as the need for more energy infrastructure is resonating across the country, both inside governments and with Canadians. Article content Article content 'You have to start first with what's the supply outlook going to be, and so I'm an optimist by nature,' Maki said in an interview Friday. Article content 'There are so many good things being said now out of the federal government around the need to develop conventional energy here in Canada that I'm optimistic that there's going to be a need to tweak the existing systems, to optimize the existing pipeline systems.' Article content For Trans Mountain, possible capacity expansion starts with adding drag-reducing agents to allow more oil to flow through its existing network that can transport 890,000 barrels per day (bpd) from the Edmonton area to Burnaby. Article content Article content Test work is already underway to see how it will work. This step could increase existing system capacity by five to 10 per cent, at relatively minimal capital expense, by the end of 2026. Article content In the longer term, the corporation is doing early engineering work on a plan that could see pumping stations added to bolster capacity to nearly 1.14 million bpd later in the decade. Article content Article content Boosting the capacity of the Trans Mountain system will be determined, in part, by demand from producers and by the owners of the Trans Mountain Corp. — Canadian taxpayers. Article content The fact Trans Mountain is working on the concept just a year after completing its historic $34-billion expansion development, which nearly tripled the capacity of the existing line to the B.C. coast, speaks to the economic uncertainty Canada faces today.
National Observer
30-05-2025
- Business
- National Observer
Trans Mountain CEO offers to take on more pipelines
The CEO of Crown-owned pipeline operator Trans Mountain Corp. says it could take on other market-expanding pipeline projects if necessary, but that it would be preferable for the private sector to take the lead. Trade tumult in recent months with the United States — Canada's biggest customer for its crude oil — has intensified calls for Canada to build infrastructure that would allow its resources to flow to other global buyers. When the expanded Trans Mountain pipeline began shipping Alberta crude to the B.C. Lower Mainland just over a year ago, oilsands producers were finally able to meaningfully access lucrative Asian markets. Trans Mountain CEO Mark Maki said in an interview Friday there's an appetite for more pipeline egress to the Pacific coast and elsewhere. "The U.S. is a great customer. It will always be a great customer, but diversification of markets for the country is important," he said. He said Trans Mountain's owner — the Government of Canada — would prefer the private sector lead the way. "If that can't happen, and it's in the national interest, Trans Mountain is here," Maki said. His remarks came after Trans Mountain reported its operational and financial results for the first three months of 2025. Since oil started flowing through the expansion in May of last year, 266 crude vessels have been loaded, and third-party information suggests the destinations have been split between the U.S. West Coast and Asia. The expanded pipeline shipped an average of about 757,000 barrels per day during the quarter — below its capacity of 890,000 barrels per day. Maki said if the pipeline were running full, western Canadian heavy crude would see a steeper price discount against the easier-to-refine light crude sold on the global market. That would eat into the margins of Alberta producers. "You really don't want us 100 per cent full … What's important really is to keep a little bit of slack in the system," he said. As of now, the supply of crude hasn't caught up with takeaway capacity. "But when that happens, the crude differential blows out. And so having a little bit of wiggle room is important." Trans Mountain said there are economical ways to boost the pipeline's capacity if needed, such as adding chemical agents to reduce friction, which would enable more crude to flow through the line. Other options could include adding pumping horsepower or pipe segments. Those projects could together add up to 300,000 barrels per day of capacity. Trans Mountain said quarterly net income was $148 million, down from $158 million a year earlier. Its earnings before interest, taxes, depreciation and amortization — a measure it says reflects the performance of its underlying business — were $568 million, compared to the $36 million it brought in a year earlier, before the pipeline expansion had started up. During the quarter, $311 million was paid to its parent Canada TMP Finance Ltd., which is itself owned by the Canada Development Investment Corp. That consisted of $148 million in interest payments and $163 million in cash dividends. The original Trans Mountain pipeline has been operating since the 1950s. In 2013, U.S. energy company Kinder Morgan filed a proposal to expand it at a cost of $5.4 billion, touching off a contentious regulatory review process marked by protests and legal challenges. Kinder Morgan suspended work in 2018 and shortly thereafter sold the pipeline to the federal government for $4.5 billion. By the time the expansion project was completed, its cost had ballooned to $34 billion. Maki said there's no hurry to bring Trans Mountain back into private hands. He said the expanded pipeline should get a little more operating history under its belt so a potential buyer can ascribe the proper value to it. A dispute over the tolls customers pay to use the line, currently before the Canada Energy Regulator, also needs to be sorted out, he said. There is also interest in potential Indigenous equity ownership in the line — when the time is right. Trans Mountain is in a "transitional" year where it is starting to pay dividends and is continuing some of the cleanup work from the pipeline construction. Next year will be a "much more normal" one, Maki said. "And so really probably at that point and out would make sense to start thinking about that."
