(BURNABY, B.C., JANUARY 10, 2013): Kinder Morgan today announced an update to the scope of its proposed expansion of the Trans Mountain Pipeline. As a result of a recently completed supplemental open season process, new long-term contracts have been signed, bringing the total volume of committed shippers to approximately 700,000 barrels per day (bpd). These additional commitments will result in an increase in the proposed expansion capacity from 750,000 bpd to 890,000 bpd. The expansion represents a capital investment of $5.4 billion and will complete the twinning of the existing pipeline from Strathcona County, Alberta to Burnaby, British Columbia.
KEY FACTS – CAPACITY & COMMERCIAL PROCESS
- The expansion will increase the capacity of the Trans Mountain Pipeline from 300,000 bpd to 890,000 bpd.
- Of the 890,000 bpd, 708,000 bpd is allotted for the 13 customers who signed up for 15 and 20-year contracts.
- The remaining, approximately 180,000 bpd, will be available for customers who chose not to enter into long-term contracts and want to access the spot market.
- Kinder Morgan Canada held two previous open season processes. This third, most recent open season took place between October and November 2012 and was concluded in early January.
- This supplemental open season was initiated to allow for a fair and open process for customers and was in response to the National Energy Board (NEB) disallowing a particular condition in the previous two rounds. The third open season was only open to customers who would have previously participated.
SCOPE OF EXPANSION
Over the coming months, as the application to the NEB is developed, we’ll be doing additional engineering work and studies to assess how the increased capacity will impact the scope of the project including the size of the pipeline, and related facilities along with assessing the number and safety of tankers passing through the coastal waters of southern British Columbia. The following chart provides some high-level information for comparison purposes with details about the Trans Mountain pipeline as it operates today, the project as proposed in April 2012, and the project as it is currently proposed.
|Trans Mountain Pipeline Today||Expansion as Proposed in April 2012||Current Expansion Proposal (Jan. 2013)|
|Barrels Per Day Capacity||300,000||750,000||890,000|
|Number of Storage Tanks||40||58 total||61 total|
|Westridge Marine Terminal||One berth for loading plus one utility berth with spill response equipment||Three loading berths plus one utility berth with spill response equipment||Three loading berths plus one utility berth with spill response equipment|
|Number of Tankers (Aframax) loaded at Westridge Marine Terminal||Up to 5 per month||Up to 25 per month||Up to 34 per month|
|Expansion Pipeline Diameter||n/a||30 inch||36 inch|
|Pump Stations||24||37||35 total pump stations|
|Project Cost||n/a||$4.1 Billion||$5.4 Billion|
LATE SPRING/EARLY SUMMER 2012 - Meetings & Discussions
SUMMER 2012 - Continued engagement and tolling application
JUNE 2012 TO SPRING 2014 - Continued engagement, studies and assessments
LATE 2013 - Filing of comprehensive facilities application
2014 TO 2015 - Regulatory review
2016 TO 2017 - Proposed construction dates
2017 - Proposed start date for operations
An open, extensive and thorough engagement process on all aspects of the proposed project is underway along the pipeline corridor between Strathcona County (near Edmonton) and Burnaby, B.C. and the marine corridor. Trans Mountain is reaching out to all landowners along the pipeline and meeting with community leaders, elected officials environmental groups and Aboriginal peoples to get their input and perspective.
Between October 2012 and January 2013, 37 information sessions were held in 30 communities around B.C. and Alberta providing the opportunity for people to learn about the project, ask questions and provide feedback.
ABOUT TRANS MOUNTAIN
The Trans Mountain Pipeline System has been in operation since 1953. Since that time, the pipeline capacity has been increased a number of times by twinning parts of the line and adding associated facilities including increased pumping capabilities. On April 12, 2012 Kinder Morgan announced it will proceed with its proposed plans to expand the existing Trans Mountain Pipeline system after receiving strong commitments from its commercial customers.