Trans Mountain Pipeline Hits Full Capacity, Eyes Expansion Amid Asian Demand
The crucial Canadian export conduit reaching 890,000 bpd capacity signals tight global markets but also potential for more Bakken-accessible takeaway.
The expanded Trans Mountain pipeline has reached full capacity for the first time, operating at its new maximum of 890,000 barrels per day, according to a report from OilPrice.com. A senior company executive stated that demand for space on the pipeline this month has already exceeded available capacity.
This surge is driven largely by Asian demand, with China becoming the largest buyer of Canadian crude last year at over 200,000 barrels daily. The pipeline's success has been so immediate that Trans Mountain Corp. signaled in late May it would hold another open season to secure shippers for an additional 72,000 barrels per day of capacity, OilPrice.com reported. The company's CEO, Mark Maki, said another 90,000 barrels daily could be added through the use of anti-drag agents, with potential to reach 1.2 million barrels daily by 2029.
For Bakken producers, the Trans Mountain Expansion (TMX) is a critical piece of infrastructure that provides indirect access to premium Asian markets. While the pipeline primarily carries Canadian crude from Alberta, its capacity constraints and expansion plans are a key indicator of global crude flow dynamics and competition for West Coast export slots. Tight capacity on TMX can influence pricing and netbacks for crude streams competing for similar market access.
Furthermore, the reported planning of a second crude pipeline from Alberta to the British Columbia coast, with a proposed capacity of 1 million barrels per day, represents a longer-term opportunity for Bakken oil to reach tidewater. Such an expansion of West Coast export infrastructure could provide additional optionality for North Dakota's output, though the source notes the project faces stiff opposition.
The current capacity crunch on TMX underscores a global supply tightness exacerbated by the war in the Middle East, which boosted Asian appetite for non-OPEC crude. This environment supports stronger pricing for light sweet crudes like those produced in the Bakken, which are prized by complex refineries in Asia.
Trans Mountain's move to quickly solicit more capacity via an open season reflects strong producer interest, a sentiment Bakken operators will watch closely as they assess takeaway routes and market diversification strategies beyond U.S. pipelines and Gulf Coast exports.
Source
OilPrice.com
