Trans Mountain is progressing with its initial endeavor to enhance oil flow in its pipeline network connecting Alberta and British Columbia. The government-owned entity has recently sought approval from the Canada Energy Regulator to implement drag reducing agents (DRA) in order to boost oil transportation capacity by up to 10 percent.
The proposed project is estimated to cost $9 million, with construction slated to commence in August as per documents filed with the regulator. It is anticipated that the project could be operational by January 2027. The original Trans Mountain pipeline, established in the 1950s, has been supplemented by the $34 billion expansion initiative that commenced oil transport from Edmonton to the Vancouver region in May 2024.
Initially, the Crown corporation had intended to explore pipeline capacity enhancements later in the decade. However, the timeline was accelerated due to escalating oil production in Alberta and projections indicating that existing export pipelines will approach full capacity in the near future.
According to Trans Mountain, the implementation of the DRA Project will not lead to additional vessel traffic at the Westridge Marine Terminal beyond what was previously evaluated during the reconsideration process for the Trans Mountain Expansion Project. The company is also contemplating various other projects to augment oil transportation capacity, such as the construction of additional pumping stations capable of moving an extra 360,000 barrels per day within the next five years. Presently, the twin pipeline has the capacity to transport around 890,000 barrels per day between Alberta and the western coast of British Columbia.
The utilization of drag reducing agents, which are chemicals that minimize friction within pipelines, is anticipated to be a cost-effective measure compared to other proposed enhancements to the pipeline system. Several expansion plans for major pipelines, including Trans Mountain, could significantly boost the volume of oil exportation from Western Canada.