The Canada Energy Regulator has signed off on a toll settlement between Trans Mountain Corp. and the companies that ship oil through its pipeline connecting Alberta and British Columbia, resolving a dispute that had clouded use of the line and complicated federal plans for its eventual sale.
A commission within the regulator ruled that the tolls agreed to by Trans Mountain and its shippers were “just and reasonable.” The approval also raises the share of pipeline capacity that Trans Mountain can lock in through contracts with shippers to 90 per cent, up from the previous limit of 80 per cent.
How the Settlement Came Together
Trans Mountain first announced the settlement in July, following 18 months of negotiations with the shippers that rely on the pipeline to move their crude. According to the Globe and Mail, the underlying dispute had discouraged use of the pipeline and stood in the way of the federal government’s plans to eventually sell the Crown-owned asset.
A Growing Pipeline Network
Trans Mountain, a federal Crown corporation, operates the 1,180-kilometre pipeline that carries crude from Edmonton to a marine terminal in Burnaby, B.C. From there, oil is loaded onto tankers for shipment across the Pacific.
The pipeline underwent a major expansion project that tripled its capacity to 890,000 barrels per day when it started up in 2024. The company has said it plans to expand capacity further, to 1.19 million barrels per day, by late 2028.
Trans Mountain Pipeline: Capacity and Contract Terms
With the toll settlement now approved, Trans Mountain has clarity on the commercial terms shippers will pay to move oil through the pipeline, as the company continues work toward its next expansion target later this decade.
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