Trans Mountain Settlement Locks In Tolls, Opens Door to 300,000 bpd Capacity Boost

Trans Mountain Settlement Locks In Tolls, Opens Door to 300,000 bpd Capacity Boost

Trans Mountain Corporation has filed a negotiated settlement with the Canada Energy Regulator covering tolls, tariffs and service on its pipeline system, BOE Report reports, following roughly 18 months of negotiations with shippers.

Market Impact

The settlement, which needs CER approval, would finalize tolls retroactive to May 1, 2024 and establish a new long-term framework for both firm and uncommitted shippers, including 15- and 20-year Transportation Service Agreements. It also raises the level of firm capacity on the system from 80% to 90% of nominal pipeline capacity. Trans Mountain has asked the CER to approve the settlement by October 1, 2026, targeting a January 1, 2027 effective date.

“This long-term framework provides greater certainty and predictability for customers and stakeholders while supporting Trans Mountain in connecting Canadian crude oil to global markets,” said Mark Maki, CEO of Trans Mountain Corporation. The system, which has 890,000 bpd of nominal capacity and runs more than 1,180 kilometers through Alberta and British Columbia plus 111 kilometers in Washington State, has been running at full capacity for consecutive months. A Firm Contracting Open Season that closed June 2, 2026 showed strong demand for long-term service, and allocations from that process were conditional on the settlement’s approval.

Trans Mountain is also moving on capacity expansion. Its Mainline Optimization Program, which includes a drag reducing agent (DRA) project and targeted facility upgrades, is expected to add up to 300,000 bpd of incremental capacity by the end of 2028. The company has already secured its first regulatory permit for the program and anticipates a roughly 10% throughput increase, or about 90,000 bpd, by the end of 2026. A new Open Season for that incremental capacity runs from July 13 to August 10, 2026, with interested shippers required to sign a confidentiality agreement to access commercial terms.

What It Means for Subcontractors

• Mechanical, E&I and civil contractors working the Alberta-to-BC corridor should watch for bid packages tied to the DRA project and “targeted facility enhancements” under the Mainline Optimization Program, which needs to deliver 90,000 bpd of added throughput by year-end 2026 and up to 300,000 bpd by 2028.
• Firms with existing service contracts on Westridge Marine Terminal or mainline facilities can expect more predictable payment terms once the settlement’s tolling framework takes effect around January 1, 2027, reducing the risk of retroactive toll disputes affecting client cash flow.
• Contractors targeting new scopes should register interest before the July 13 to August 10, 2026 Open Season window closes, since capacity allocations and related infrastructure work will follow shipper commitments made during that period.
• Pipeline integrity, coatings and instrumentation subcontractors should track the CER’s review of the settlement application, due for a decision by October 1, 2026, since approval timing will set the schedule for facility upgrade work tied to the 90% firm capacity threshold.