A Canadian energy sector company is reviewing ways to expand projects in the wake of U.S. tariff threats which could see it increase the country’s barrel per day production by as much as 300,000.
The Trans Mountain Expansion oil pipeline first launched commercial operations last May following years of regulatory delays and obstacles since it was first announced.
The $30.9 billion project, owned by the Canadian government, was designed to substantially increase the transport capacity of oil from Alberta through B.C. to the Pacific Coast and currently ships up to 890,000 barrels per day for export.
Shipments of oil are primarily sent to the United States and Asian markets.
However, following U.S. President Donald Trump’s recent announcement to hit Canada’s energy sector with 10 per-cent tariffs on all oil imports, Trans Mountain said it’s looking to expand existing projects to allow for an additional 200,000 to 300,000 barrels per day.
Trans Mountain vice-president Jason Balasch told Energy Now that the additional barrels would be a means for Canadian oil producers to export to international markets without relying on the extensive network of pipelines south of the border.
Canada currently relies on the U.S. pipeline network for about 9% of the country’s total crude exports.
While Canada-U.S. trade remains volatile, Trans Mountain is reviewing its short-term options such as using a drag reducing agent in its pipeline to expedite transportation as well as installing additional pumps for long term use.
According to Trans Mountain, it’s capable of providing enough oil for 28 to 30 tankers monthly should restrictions at the Vancouver Port roll back and allow for night time shipping.
The company projects these restrictions to be removed by the third quarter of this year.
The Port of Vancouver has been installing navigation aids that will allow the port to become fully operational at all times.
Under the current daytime loading schedule, Trans Mountain has been loading a maximum of 24 Aframax vessels per month, transporting around 800,000 barrels per day.
However, if the restrictions are lifted, the company could see a significant increase in exportation.
