Kinder Morgan Energy Partners, L.P.’s (NYSE:KMP) Trans Mountain Pipeline ULC has announced plans to increase the capacity of its proposed expansion of the Trans Mountain pipeline, which supplies oil and petroleum products from the Albertan oil sands to the Chevron refinery in Burnaby.
The company announced yesterday that it signed new long-term contracts with shippers committing to 700,000 barrels per day (bpd). The company said, as a result of the additional commitments, it will increase the proposed expansion capacity to 890,000 bpd from 750,000.
“Thirteen customers in the Canadian producing and oil marketing business have now signed binding, long-term contracts, which demonstrates the need for this proposed expansion that will serve both existing and new markets,” said Ian Anderson, president of Kinder Morgan Canada.
Anderson said that, over the next several months, the company will do additional engineering work and studies to assess how the increased capacity will impact the scope of the project.
“We will continue our open and inclusive engagement program already underway with landowners, communities and aboriginal groups,” he said.