Trans mountain Pipeline Expansion Current Situation:

The expansion of the TMX pipeline is around 95% complete, Trans Mountain Corp told Bloomberg last week, with around 5km (3.1km) of pipe left to install. Mechanical completion is expected by the end of this year.

• Once construction is finished, “several steps” are required before each section of the line can be made operational. The target date for commercial operations remains the end of Q1 2024.

• However, the Canada Energy Regulator ordered Trans Mountain to appear at an oral hearing Nov. 27 to decide whether to approve a variance request from the project, Reuters reported.
• The issue is over the installation of a shorter diameter pipe, which would cut the installation time by 55-60 days. The company has requested the change after facing more problematic construction conditions due to the hardness of the rock in a section within British Colombia.
• Although the target start date remains Q1 2024, Energy Aspects said that it may not enter formal service until the end of Q2. The Q2 start may coincide with maintenance work in the oil sands, Energy Aspects said.
• When finished, the pipeline will triple the capacity to 890k b/d and is expected to boost prices for Canadian crudes.
• Canadian oil and gas producers are planning to drill 8% more wells in 2024 to take advantage of the pipeline capacity increases, according to Reuters.