No rush on new crude oil pipelines, Trans Mountain chief executive says

The head of the company that operates the Trans Mountain pipeline says there is no immediate need for new pipeline space in Canada.

The chief executive at Trans Mountain Corp. says there should be ample pipeline space to get Canadian crude oil to market until at least 2030 without the need for a whole new project being built from scratch.

Mark Maki says at the rate production has been growing, existing pipelines out of Alberta are on track to fill up around 2027 as they’re currently configured.

But he says his company and other pipeline firms have small-scale projects in the works to retool their networks to boost throughput, which should give the industry a few more years’ worth of runway to accommodate forecast production.

Maki says Trans Mountain has been testing the use of chemical additives to help crude flow more smoothly through the pipeline, which connects Alberta to a marine port near Vancouver.

He expects the Crown corporation will hold an open season later this year for the additional capacity that initiative will allow — essentially an invitation for producers to commit more barrels to the pipeline.

Maki made his remarks in an interview ahead of the release of Trans Mountain’s second-quarter results, which included a $150-million profit, reversing a $48-million year-earlier loss.

He said projects to boost volumes on existing pipelines, through the drag-reducing agents and adding pumping power, can be done relatively quickly, without the need to rush a whole new project.

“You optimize your existing pipeline first,” he said. “That gives you time to evaluate market, do your routing work, your design, and all the rest on a new pipeline.”