Trans Mountain Corporation filed a negotiated agreement with shippers before the Canada Energy Regulator (CER) to define tolls, tariffs, and service conditions for the Trans Mountain Pipeline System. The proposal follows approximately 18 months of negotiations and aims to establish a long-term commercial framework for the transport of Canadian crude oil.
The agreement represents the vast majority of firm volumes contracted on the system. According to the company, the goal is to provide greater predictability for customers, producers, and stakeholders, while maintaining the connection of Canadian oil to international markets from the West Coast.
A tariff framework pending approval
If approved by the CER, the agreement would resolve open matters in the RH-002-2023 proceeding and set tolls for the period starting May 1, 2024. Likewise, it would define future conditions for shippers with firm contracts and for users without firm contracts.
Additionally, Trans Mountain seeks to increase the system’s firm capacity from 80% to 90% of the pipeline’s nominal capacity. This change would reduce the proportion available for spot shipments but would strengthen contractual stability for long-term customers.
Expanded pipeline reinforces capacity for Canadian crude
The expanded Trans Mountain system has operated for months at or near full capacity. This performance reflects the sustained demand for Canadian crude and the need for export routes to Pacific markets, including Asia and other international destinations.
The pipeline expansion entered commercial service in 2024, increasing its capacity to approximately 890,000 barrels per day. For Canadian producers, this infrastructure offers a direct outlet to the West Coast and reduces dependence on traditional routes to the United States.
Optimization and new available capacity
Trans Mountain is also moving forward with its Mainline Optimization Program, which includes the use of drag-reducing agents and specific facility upgrades. Through these actions, the company expects to add up to 300,000 barrels per day of incremental capacity by the end of 2028.
In an initial stage, the company expects to enable nearly 90,000 additional barrels per day before the end of the year. To allocate this capacity, it will open a bidding period between July 13 and August 10, 2026.
Long-term contracts starting in 2027
Trans Mountain requested the CER to approve the agreement before October 1, 2026, in order to implement the new framework on January 1, 2027. The proposal includes tolls linked to 15- and 20-year transportation service agreements, as well as options for firm shippers to extend their contracts.
With this move, the company seeks to close a period of tariff uncertainty and organize commercial access to the pipeline. For the Canadian energy market, the outcome will be key as it will define how capacity is allocated for a strategic infrastructure used to export oil from Canada to global markets.
Source: Trans Mountain
Photo: Shutterstock
