Canada’s $24.7-billion TMX oil pipeline begins operations

Canada

VANCOUVER, April 30, 2024 – Canada’s USD 24.7-billion Trans Mountain Expansion (TMX) oil pipeline has begun operations after more than four years of construction, according to operator Trans Mountain Corp.

The 590,000-bopd pipeline expansion, running from Alberta’s oil sands region to the British Columbia coast, became operational as of Wednesday.

It almost triples the pipeline’s capacity, bringing it to 890,000 bopd.

70% of the expanded pipeline is full by volume, Trans Mountain said in a press release.

The news was hailed in a joint statement from Alberta Premier Danielle Smith and Minister of Energy and Minerals Brian Jean.

“We are excited that Canada’s biggest and newest oil pipeline in more than a decade can now bring oil from Edmonton to tidewater in B.C. ,” they said.

“This will allow us to get our energy resources to Pacific markets, including Washington State and California, and Asian markets like Japan, South Korea, China and India. Alberta now has new energy customers, and tankers with Alberta oil will be unloading in China and India in the next few months.”

The project involved twinning the existing Trans Mountain pipeline. It faced strong opposition from environmental activists and some First Nations groups, who oppose continued extraction from the Alberta oil patch and expressed concerns about leaks.

The pipeline startup gives the country expanded access to global markets at a time of relatively high oil prices.

Canada is the world’s fourth-largest oil producer.

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