The expanded Trans Mountain pipeline has entered commercial exploitation, ending a decade of wait for one of Canada's largest and most controversial energy projects.
The expanded pipeline on Tuesday received the final regulatory approval needed to begin transporting crude oil from the tar sands to Canada's Pacific coast. The pipeline was 70% full and all shipper deliveries are subject to the new rates and tolls, according to the company.
The launch of Trans Mountain marks the finish line of a project beset by years of delays, construction setbacks, legal battles and fierce environmental opposition. ANDThe gas pipeline ended up costing CAD$34 billion (US$25 billion)more than six times the original estimate, and its start date was seven years later than expected.
All in all, the expansion almost triples the line's capacity to 890,000 barrels per day, greatly increasing the volume of crude oil Alberta oil producers can ship to growing Asian markets. These new buyers are also expected to reduce dependence on US refineries and support the pricing of Canadian crude oil.
Shipments on the new line are already scheduled to be sent to China, California and India. Tankers will be able to start receiving oil from the expanded pipeline in mid-Mayaccording to Trans Mountain.
Many British Columbia residents and indigenous communities considered the pipeline a threat to the environment and opposed its construction. The battle became so tense that Prime Minister Justin Trudeau's government purchased Trans Mountain from Kinder Morgan Inc. in 2018 to save the project from cancellation..
