Trans Mountain Pipeline ULC, operated by Kinder Morgan Canada and owned by Kinder Morgan Energy Partners LP (NYSE: KMP), has filed a facilities application with its regulator, the National Energy Board (NEB), for authorization to build and operate the necessary facilities for the company’s proposed Trans Mountain expansion project.
The application addresses all issues previously identified by the NEB, including environmental, socio-economic, aboriginal engagement, landowner and public consultation, marine risk assessments, and engineering components of the proposed expansion project. With this filing, the proposed project will undergo a comprehensive public regulatory review.
The next step in this process will be for the NEB to establish a hearing schedule that corresponds to the federal government’s legislated 15-month review and decision timeframe. If approvals are received, the expansion is expected to be operational in late 2017.
In spring 2012, Kinder Morgan Canada announced it would move forward with its proposed plans to expand the existing Trans Mountain pipeline system between Edmonton, Alberta, and Burnaby, British Columbia, following strong commitments received from its customers. Thirteen companies in the Canadian producing and oil marketing business signed firm contracts, bringing the total volume of committed shippers to approximately 708,000 barrels per day (bpd).
Kinder Morgan Canada received approval of the commercial terms related to the expansion from the NEB in May of this year. The proposed $5.4 billion project will increase capacity on Trans Mountain from approximately 300,000 bpd to 890,000 bpd.
For 60 years, the 1,150-km (715-mi) Trans Mountain pipeline system has been providing the only West Coast pipeline access for Canadian oil products, including about 90% of the gasoline supplied to the interior and south coast of British Columbia.