Trans Mountain Corporation has channelled $450-million into federal coffers over the past three months, fuelled by throughput running near full capacity and renewed momentum behind the contentious pipeline’s multibillion-dollar expansion.
The Calgary-based crown corporation disclosed on Friday that its network carried an average of 840,000 barrels of oil daily during the second quarter — operating at 94 per cent of capacity. Shippers, including Canada’s largest energy producers, directed roughly 65 per cent of that volume to refineries across Asia.
The performance translated into a $138-million quarterly profit and continued to deliver meaningful returns on Ottawa’s $34-billion investment in the pipeline and its expansion. The latest payment to the federal government comprises $150-million in interest and $300-million in cash dividends.
Since the federal government acquired Trans Mountain from Houston-based Kinder Morgan Inc. in 2018 and completed the controversial expansion just over two years ago, the operator has returned $2.6-billion to Ottawa through interest and dividends.
“Trans Mountain is delivering long term value for Canadians,” chief executive officer Mark Maki said in an interview.
Operational upgrades set to lift capacity to 1.2 million barrels daily
The company is pressing ahead with engineering upgrades designed to push the pipeline’s capacity from 890,000 barrels per day to 1.2 million. Mr. Maki said the improvements are projected to be completed by the end of 2028.
Trans Mountain is now also leading the development of a separate West Coast pipeline, expected to cost up to $44-billion, which would largely follow the route of the existing system. The federal and Alberta governments announced the arrangement in July.
The lessons drawn from the expansion — which ballooned well beyond its original $7.4-billion budget — will be central to delivering the new project efficiently, according to Mr. Maki. “This is a challenging project, but we learned our lessons,” he said. Preliminary engineering and route planning are already under way.
The West Coast pipeline presents fresh technical hurdles. It would rely on larger-diameter pipes operating at higher pressure than the current network. The line would terminate at a yet-to-be-built facility at the Roberts Bank terminal in Delta, British Columbia, capable of loading larger supertankers than those serving Trans Mountain’s existing Westridge Marine terminal in Burnaby.
Alberta has formally asked the federal Major Projects Office to designate the pipeline as being in the national interest by Oct. 1 — a step intended to accelerate regulatory approvals. Pembina Pipeline Corp. and Indigenous groups have emerged as potential investors in the venture, which would also transport approximately one million barrels of oil per day.
Federal government eyes eventual sale with Indigenous ownership
Ottawa remains committed to divesting Trans Mountain to the private sector, with Indigenous groups expected to participate in any future ownership structure. Mr. Maki’s advice to politicians weighing the timeline is straightforward: be patient.
“When you look at the scale of [Trans Mountain] and its role in the global energy industry, there is nothing like it in the world,” he said. Pair that scale with Indigenous equity holders and the social licence that brings, he added, and “then I am confident this company would have enormous value to future owners.”
Trans Mountain’s customer base includes the country’s biggest oil sands producers, among them Cenovus Energy Inc. and Canadian Natural Resources Ltd. The companies pay fixed fees to move oil through the line, typically under long-term contracts of up to 20 years.
Geopolitical tensions renew Asian appetite for Canadian crude
Recent strength in oil and gas prices, triggered by Iran’s response to attacks by the United States and Israel, has had no direct effect on Trans Mountain’s finances. But it has sharpened interest from Asian refiners in Canadian heavy crude.
“We are working with our partners, the oil producers, to help educate potential buyers on the reliability and quality of Canada’s energy industry,” Mr. Maki said.
During the quarter, Trans Mountain loaded approximately 60 per cent of the oil it transported into tankers at its Burnaby terminal. Around 28 per cent flowed south into Washington state via the Puget Sound Pipeline, with British Columbia refiners taking the remainder.
To accommodate larger tanker loads departing British Columbia, the Vancouver Fraser Port Authority is preparing to dredge the Second Narrows of Burrard Inlet — the constricted channel between the Trans Mountain terminal and the open Pacific. Dredging is scheduled to begin in September.
Why it Matters
Trans Mountain’s latest results underscore the financial weight the pipeline now carries for Canadian taxpayers, even as political debate over its future ownership intensifies. With capacity set to climb and a separate West Coast mega-project gathering pace, the crown corporation is positioning itself as a cornerstone of Canada’s energy export strategy — one whose eventual sale to private and Indigenous hands could reshape who benefits from the country’s vast oil sands reserves.
