Trans Mountain Pipeline Variance Denial Could Add Two Years to Project

Trans Mountain Corp has asked the Canda Energy Regulator to reverse its pipeline variance request denial – warning it could lead to a two-year delay.

• They claim a smaller diameter borehole is required for the pipeline because of rock hardness. They had previously said the delay would add ~60- days to the project.
• The pipeline is intended to triple shipments of crude from Alberta to Canada's Pacific coast to 890,000 bpd once it starts operating.
• The Trans Mountain expansion is due to start shipping oil by the end of March 2024.
• Delay concerns have been increasing US Canadian Heavy discounts vs WTI.
• Canadian oil producers have been increasing oil output in anticipation of a March start.
• "If the (horizontal directional drill) fails and Trans Mountain is required to implement an alternative installation plan, the TMEP schedule will likely be delayed by approximately two years, and Trans Mountain will suffer billions of dollars in losses," the company said.