Trans Mountain Pipeline Hits Full Capacity for First Time Since Expansion
According to a Reuters report via BOE Report, Canada’s Trans Mountain pipeline is running at full capacity for the first time since a major expansion was completed two years ago, though an executive warned that global market turmoil makes predicting future utilization rates difficult.
Pipeline Hits Full Apportionment
The 890,000-barrel-per-day system, which moves Alberta crude to British Columbia’s west coast, is at apportionment for June 2026, meaning shipper demand for spot capacity now exceeds what is available. As recently as last summer, the pipeline was running at roughly 84% utilization.
Jason Balasch, vice president of business development for Trans Mountain, attributed the demand surge in part to uncertainty in global crude markets and disruption to the Strait of Hormuz, which has pushed Asian buyers toward Canadian supply. He cautioned, however, that those same conditions make it hard to forecast utilization rates beyond the near term.
Canadian oil production is also a factor. Output in 2026 is expected to exceed last year’s record of 5.3 million barrels per day, with Canada ranked as the world’s fourth-largest crude producer. Canadian heavy crude prices have improved sharply since the Trans Mountain expansion tripled the pipeline’s capacity in 2024.
Looking ahead, Trans Mountain is planning optimization projects, including drag-reducing agents and new pumping stations, that are expected to add 300,000 bpd of capacity by the end of 2028. Alberta is also exploring a new 1-million-barrel-per-day pipeline to the province’s northwest coast, though no private-sector company has committed to that project yet.
What It Means for Subcontractors
- Pumping station and injection work is coming. Trans Mountain’s optimization program, targeting an additional 300,000 bpd by end of 2028, will require construction and mechanical contractors. Subs with pipeline infrastructure experience should be positioning for that procurement cycle now.
- Full apportionment signals sustained throughput demand. A fully subscribed pipeline means producers are motivated to keep barrels moving, which supports activity levels across upstream and midstream operations in Alberta and BC.
- Don’t over-plan around short-term demand signals. Balasch’s explicit caution about global volatility is a reminder that apportionment in June doesn’t guarantee the same picture in Q4. Subcontractors should be careful about scaling capacity or committing resources based solely on current utilization rates.
- The proposed northwest coast pipeline is still speculative. Alberta is studying a 1-million-bpd line to tidewater, but no private-sector sponsor has committed. Field service companies shouldn’t factor that project into near-term business plans.
