The Trans Mountain expansion has proven a point, 'opening a trade route to Asia' for Canadian oil

And as petroleum producers boost output in Western Canada, Trans Mountain officials and industry experts think the federally owned pipeline could fill up faster than was initially expected.

Varcoe: The Trans Mountain expansion has proven a point, 'opening a trade route to Asia' for Canadian oil

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Chris Varcoe  •  Calgary Herald

Published Aug 10, 2024  •  Last updated 6 days ago  •  5 minute read

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Construction for the Trans Mountain Pipeline expansion in Burnaby, B.C. Trans Mountain Corp.

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With the first three months of commercial operation now complete, the expanded Trans Mountain pipeline has proven one of the central beliefs of its backers – the mega-project has opened up new trade routes for Canadian oil to Asia.

And as petroleum producers boost output in Western Canada, Trans Mountain officials and industry experts think the federally owned pipeline could fill up faster than was initially expected.

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Since the Trans Mountain expansion (TMX) began commercial operations in May, the operator believes roughly one-third of the shipments out of the corporation’s Westridge Marine Terminal in Burnaby, B.C., have been destined for customers in Asia, mainly in China.

The rest has gone south into the United States, primarily California and Washington state.

Jason Balasch, Trans Mountain Corp.’s vice-president of business development and commercial services, said about 44 tankers were loaded between the May startup and last week.

“That’s a little bit of a surprise, I think, with the amount of Asian vessels right off the hop…That’s fantastic news for us,” Balasch said in an interview last week.

“The strategy is opening a trade route to Asia. And it appears that that has taken hold, even in the first two, three months of operation.”

A report issued Friday by RBC Capital Markets identified California as the main destination for Canadian heavy oil shipped by TMX, with “other trade flows developing.”

RBC said 19 oil tankers left Burnaby last month, some headed for multiple ports, and California accounted for one-half of the total port destinations. (Cargo transfers to other ships also took place.)