Canada’s Trans Mountain expects more interest in pipeline system if U.S. implements tariffs

Canadian pipeline relation Trans Mountain said it expects to spot accrued involvement to vessel connected its strategy if the United States slaps tariffs connected Canadian lipid imports pursuing the 30 time intermission that was announced connected Monday.

The pipeline, which tin transportation up to 890,000 barrels per time of crude from Alberta to the company’s terminal astatine Burnaby, B.C. has been astir 80 per cent full, with astir 20 per cent capableness disposable for spotshipping astatine a much costly rate.

While exports of crude lipid done the Trans Mountain’s pipeline represented lone 9 per cent of Canada’s full crude exports, it has travel nether the spotlight aft U.S. President Donald Trump said helium would slap 10% tariffs connected Canadian lipid imports by the United States.

Nearly each of Canada’s lipid exports – immoderate 4 cardinal barrels per time – caput to the United States to beryllium processed by refiners oregon re-exported from U.S. Gulf Coast ports to buyers successful Asia.

The Trans Mountain pipeline expansion, which started operations successful May, provides an alternate way to export a larger measurement of crude straight to different markets, chiefly Asia, thereby reducing the reliance connected the U.S. market.

“We expect determination volition beryllium accrued involvement to vessel connected our strategy successful the look of U.S. tariffs, but it is excessively aboriginal to foretell what the volumes volition be,” Trans Mountain said successful an emailed statement.

Deliveries to Asia are besides apt to increase, the institution said, adding that deeper discounts for Canadian crude were likely.

The institution said it was investigating ways to amended the ratio and summation the capableness of the expanded system, successful the adjacent 4 to 5 years.

Exports from Vancouver averaged astir 370,000 barrels per time successful the past 8 months, according to information from vessel tracking steadfast Kpler with astir 51 per cent of that headed to Asia, chiefly China, portion the remainder went to the United States.