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Trans Mountain Pipeline decision

Posted by Site Admin

There seems to be some confusion regarding what was approved recently by the National Energy Board (NEB) with regard to the Kinder Morgan Trans Mountain Pipeline application. Specifically the NEB has approved Trans Mountain's Firm Service application. the NEB has NOT approved the twinning of the Pipeline; Trans Mountain hasn't applied to twin the pipeline.

Firm Service is an allocation of long-term contracts for oil moving through the pipeline to the Westridge Marine Terminal. the NEB approval increases the bpd to shippers under long-term contracts from 50,000 to 54,000. Another 25,000 bpd will be sold by monthly bid.

The increase in firm bid capacity (not pipeline capacity) means Kinder Morgan can charge a premium toll. The fact shippers are willing to pay (long-term) speaks to the price advantage and the need to have the ability to export more barrels offshore.

Link to the NEB decision here.

 

 


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