Calgary, Alberta – The expansion of the Trans Mountain pipeline, a critical project for Canada’s energy sector, is now facing possible delays of up to nine months. Originally scheduled for completion in 2024, this expansion could be set back due to regulatory challenges. The Trans Mountain Corporation submitted a filing in September stating that regulatory decisions on a reroute plan are still pending, potentially pushing the project timeline into late 2024 or beyond.
The Trans Mountain pipeline, which transports oil from Alberta to British Columbia’s Pacific coast, plays a crucial role in enabling Canadian crude to reach international markets. The expansion, which would boost the pipeline’s capacity from 300,000 barrels per day (bpd) to 890,000 bpd, is seen as essential for meeting rising energy demands on Canada’s West Coast and expanding access to overseas markets, particularly in Asia. Without this additional capacity, the rising demand may outpace the available supply routes, which could limit growth opportunities for Canadian oil exports.
Energy analysts have expressed concerns over the potential impact of this delay. Rebecca Babin, an analyst with CIBC Private Wealth, highlighted that any significant postponements might necessitate alternative transportation, such as rail, to accommodate the increased output from Western Canadian producers. However, rail transport is more costly and has its own environmental and logistical limitations, creating further pressure on Canada’s energy sector.
The Canadian government purchased the Trans Mountain pipeline in 2018, intending to expand Canada’s export capacity amid growing global demand for energy. However, the project has encountered multiple hurdles, including opposition from environmental groups and some Indigenous communities. This latest setback highlights the continued challenges facing major infrastructure projects in North America’s energy sector.
