Results for: Trans Mountain Pipeline

Suncor Energy Inc. has announced it will lease and operate Aframax oil tanker ships to transport crude from the recently completed Trans Mountain pipeline expansion to Pacific markets. This move aims to save on shipping costs and maximize profits for the company. The Trans Mountain pipeline expansion has increased Canadian oil shippers’ access to export capacity, boosting the profitability of Suncor’s oilsands production. It has also enabled future production growth for both Suncor and the oilsands sector. Suncor’s long-term contracts with customers along the West Coast and in Asia ensure a steady demand for the crude oil transported by the pipeline.

Cenovus Energy executives have highlighted the significant increase in Trans Mountain pipeline expansion project costs, with oil companies disputing the proposed higher tolls. The ongoing dispute over the project’s tolls is expected to last well into 2025, potentially impacting the pipeline’s sale and future production.

The Trans Mountain pipeline expansion project, set to open on May 1, holds both promise and concerns for Indigenous communities in northern Alberta. Some, like the Fort McKay First Nation, view it as an opportunity for economic growth and diversification, while others express worries about the environmental and health impacts of the oilsands industry. The Fort McKay First Nation has a complex relationship with the industry, having benefited from revenue and spinoff businesses but also facing challenges related to industrial development. Chief Raymond Powder emphasizes the need for opportunities for growth alongside industry expansion, while Eriel Deranger of the Athabasca Chipewyan First Nation highlights the economic dependence of many communities and the urgency of addressing climate change impacts. Justin Bourque sees growing opportunities for Indigenous participation in the oil and gas sector through equity ownership models and government support. Last month, the Fort McKay First Nation signed an agreement with Suncor Energy for potential oilsands production on its reserve lands, marking a significant step in Indigenous economic development.

Oil companies planning to ship crude on the expanded Trans Mountain pipeline in Canada are worried that the project may not begin full service on May 1 but are still obligated to pay tolls from that date, according to a letter sent to the Canada Energy Regulator (CER) by Suncor Energy and other shippers like BP and Marathon Petroleum.