Application filed for Canadian oil pipeline expansion

Kinder Morgan Canada, owned by Kinder Morgan Energy Partners LP, has filed a facilities application for the expansion of its Trans Mountain Pipeline ULC. The application has been filed with the National Energy Board (NEB), which, if accepted, would see the construction and operation of the facilities needed to expand the current tar sands pipeline. 

The application could see the crude oil pipeline's capacity almost trebled to around 890,000 barrels per day. Currently the company's existing line that runs from Edmonton, Alberta to Vancouver, British Columbia and has the capacity for 300,000 barrels per day. The application to the NEB is the next step to secure the plans for the expansion.

Preliminary plans were filed by Kinder Morgan Energy with the NEB earlier in the year for the C$5.4 billion (£3.1 billion) project. Currently the Trans Mountain pipeline is the only one that runs to the Pacific coast of Canada from the oil sands projects in Alberta. The expansion of the 715 mile pipeline has received strong support from those within the industry as it would enable them to transport more oil to international markets.

A public regulatory review of the project will now be held by the NEB to address any concerns or objection to the project. Kinder Morgan is expecting, if permission is granted, for the pipeline extension to start operating toward the end of 2017. The pipeline will mostly be used to transport crude, a large of amount of which will be transferred to tankers at the company's Vancouver marine terminal, according to Ian Anderson, president of Kinder Morgan. It is likely that most of the oil will be transported to California and Asia, he told reporters on a conference call.

According to the company, around 73 per cent of the expansion will be along the same right-of-way as the existing pipeline. As well as the expansion of the pipeline itself, Kinder Morgan has also recommended a number of alterations to marine safety procedures in a bid to improve tanker safety.