CALGARY — The chief executive of Trans Mountain Corp., Mark Maki, expressed confidence that the current pipeline infrastructure will have sufficient capacity to transport Canadian crude oil to market until at least 2030. He stated that existing pipelines out of Alberta are projected to reach full capacity around 2027 based on current configurations.
Maki emphasized that pipeline companies, including Trans Mountain, are actively developing small-scale projects intended to enhance their network capabilities. This strategic move is aimed at extending the timeline available for accommodating forecasted production increases, providing additional pipeline capacity beyond 2027.
To facilitate improved flow through the Trans Mountain pipeline, which connects Alberta to a marine port near Vancouver, the company is experimenting with chemical additives. Maki anticipates that Trans Mountain will conduct an open season later this year, thereby inviting producers to commit additional volumes of crude oil to the pipeline based on the increased capacity enabled by these initiatives.
In an interview leading up to the release of Trans Mountain's second-quarter results, Maki revealed that the company achieved a profit of $150 million, recovering from a $48 million loss during the same period last year. He noted that projects designed to boost throughput on existing pipelines—through the use of drag-reducing agents and enhanced pumping capacity—can be implemented relatively quickly. This approach allows companies to optimize their existing infrastructure before considering the development of new pipeline projects.
“You optimize your existing pipeline first,” Maki said. “That gives you time to evaluate the market, do your routing work, your design, and all the rest on a new pipeline.” He advocates for a careful and measured approach to pipeline development, suggesting that this methodology allows for better project planning and execution.
Alberta Premier Danielle Smith has indicated her interest in constructing a new oil pipeline to the Port of Prince Rupert on the northern British Columbia coast to facilitate increased exports to Asia. She has labeled this proposal as a test for a new federal framework intended to expedite the review process for projects deemed in the national interest.
However, no specific proposals for a second West Coast oil pipeline have emerged to date. The CEO of Enbridge Inc. has stated that the company might only contemplate the proposal of a new pipeline in Canada if the right policies are enacted to foster confidence in such investments.
Maki has shown willingness for Trans Mountain to share its “intellectual capital” with any entity considering a new pipeline venture, offering insights derived from its operational experience. Yet, he highlighted that Prime Minister Mark Carney is keen on having the private sector spearhead such initiatives, which would likely preclude the federally owned Trans Mountain from being the primary builder.
The expanded Trans Mountain pipeline, which became operational in May 2024, successfully transported an average of 730,000 barrels per day in the first half of the year, which constitutes approximately 82 percent of its total capacity of 890,000 barrels. Maki noted that the volume of oil transported varies seasonally, with expectations of the pipeline reaching about 90 percent capacity during the latter half of the year.
Maki pointed out that when the system reaches full capacity—meaning all pipelines are at their maximum throughput—this can lead to a significant differential blowout. This phenomenon refers to the price discount that heavy Western Canadian crude faces compared to lighter, more easily refined oils. He stressed the necessity for “some slack” in the pipeline network, allowing for flexibility and preventing potential market disruptions.
As of the latest updates, the company is on course to return $1.25 billion to the federal government through interest, fees, and dividends by the end of the year, underscoring its financial commitment to the country.
