Trans Mountain Pipeline Shippers Reach Landmark Settlement Agreement
After nearly two years of intense negotiations, Trans Mountain has finally reached a negotiated settlement with pipeline shippers covering tolling, tariffs, and transportation services for the Trans Mountain Pipeline System. The agreement represents the majority of contracted firm volumes on the system and would create a long-term commercial framework governing pipeline access, pricing, and service if approved by the Canada Energy Regulator (CER).
Source: s.yimg.com
The proposed settlement would resolve all outstanding issues in the CER’s RH-002-2023 proceeding, finalize tolls dating back to May 1, 2024, and increase the share of pipeline capacity reserved for firm contracts from 80% to 90% of nominal capacity. It would also support transportation agreements awarded during the 2026 open season for long-term contracts, which were contingent on regulatory approval.
Trans Mountain is seeking approval by October 1, 2026, for implementation beginning January 1, 2027. The filing comes as the expanded Trans Mountain pipeline continues to operate at full capacity, underscoring strong demand for Canadian crude exports to Pacific markets.
The company said its Mainline Optimization Program – including drag-reducing agents and targeted infrastructure upgrades – is expected to add up to 300,000 barrels per day of incremental capacity by the end of 2028. An initial increase of roughly 90,000 bpd could be available by year-end following the first regulatory approval, with an open season for the new capacity scheduled from July 13 through August 10.
The Trans Mountain Expansion entered commercial service in 2024, nearly tripling pipeline capacity to about 890,000 bpd and providing Canadian producers with expanded access to export markets on the Pacific Coast. The proposed settlement aims to provide long-term commercial certainty for shippers while supporting future optimization projects as Canada’s only crude export pipeline to the West Coast continues operating near full utilization.
By creating a stable and predictable environment for shippers, Trans Mountain is well-positioned to meet the growing demand for Canadian crude exports. The company’s Mainline Optimization Program will further enhance the pipeline’s capacity, ensuring that it remains a critical artery for the Canadian energy industry.
Key highlights of the proposed settlement include:
- Resolution of all outstanding issues in the CER’s RH-002-2023 proceeding
- Finalization of tolls dating back to May 1, 2024
- Increased share of pipeline capacity reserved for firm contracts from 80% to 90% of nominal capacity
- Support for transportation agreements awarded during the 2026 open season for long-term contracts
Trans Mountain’s settlement agreement with pipeline shippers marks a significant milestone in the company’s efforts to provide long-term commercial certainty for its customers. By creating a stable and predictable environment, Trans Mountain is well-positioned to meet the growing demand for Canadian crude exports and support the continued growth of the Canadian energy industry.
Background and Context
The Trans Mountain pipeline is a critical artery for the Canadian energy industry, providing a vital link between the country’s oil-producing regions and the Pacific Coast. The pipeline’s capacity has been increased significantly through the Trans Mountain Expansion project, which entered commercial service in 2024.
The expanded pipeline has the capacity to transport approximately 890,000 barrels per day, providing Canadian producers with expanded access to export markets on the Pacific Coast. The pipeline’s continued growth and expansion are expected to play a critical role in meeting the growing demand for Canadian crude exports.
