Kinder Morgan Inc. (KMI) has completed a supplemental open season for the remaining 22,000 b/d of capacity available on its planned Trans Mountain crude pipeline expansion in Canada, the company said Wednesday.
All available long-term firm service capacity on the expanded pipeline is now under contract, KMI said. In total, firm shippers have signed 15- and 20-year agreements committing to 707,500 b/d, or 80% of the total capacity, with the remaining 20% reserved for spot volumes as required by Canada's National Energy Board.
Kinder Morgan Canada President Ian Anderson touted the open season for its “swift and positive conclusion...demonstrating the continued strong market support for our project and the much-needed access to new markets it brings to Canadian producers and the secure supply of Canadian crude to refineries throughout the Pacific basin.”
The Canadian government approved the Trans Mountain expansion in November, part of 970,000 b/d of capacity additions to open up growth opportunities for Alberta oilsands operators, the country’s largest natural gas consumers.
The $5.5 billion Kinder Morgan project would triple capacity to 890,000 b/d on the 63-year old Trans Mountain pipeline, which stretches across 1,180 kilometers (732 miles) of Alberta and British Columbia, from the Edmonton oilsands shipping hub to Vancouver.
KMI next will need to arrange financing for the expansion and make a final investment decision. Construction is proposed to begin this fall, with an in-service date in late 2019.