Kinder Morgan is reopening a call for long-term binding contracts tied the expansion of the Trans Mountain pipeline, a 1,150-kilometre line that runs petroleum products from the Albert tar sands to Burnaby.
The company announced Tuesday, March 27, that the "open season" period, which already closed on Feb. 16, will run for another two weeks, starting on March 27. The open season is when shippers who use the pipeline agree to long-term binding contracts should the pipeline expand.
In a media statement, Kinder Morgan Canada said the extra two weeks "will enable interested parties to provide additional binding volume commitments as a result of project scoping changes."
The Trans Mountain pipeline can ship 300,000 barrels of oil per day, but the open season was based on a hypothetical 600,000 barrels. However, if fully expanded, the pipeline could handle a maximum of 700,000 daily barrels.
Spokesperson Lexa Hobenshield could not provide details on what changes prompted the extension, but she said it's common industry practice to extend open seasons.
"Based on current level of commitments ... and current proposed scope, we have room for additional participation from customers," she said. "The scope of the open season was 600,000 barrels per day, and it could differ - up to 700,000 barrels per day. This is still the case. More information will be available about the proposed scope later this spring."
The open season news comes the same day the company announced that it will add 1.2 million barrels of capacity to its Edmonton terminal, which connects to the pipeline.
According to the Edmonton Journal, Ian Anderson, president of Kinder Morgan Canada, operator of both Trans Mountain and the Edmonton terminal, said the Edmonton hub "will also play a very important staging role for crude oil in the Trans Mountain pipeline expansion proposal."
Kinder Morgan still needs to consult the public and apply for National Energy Board approval before expanding the pipeline.
- with files from Dave Cooper, The Edmonton Journal.
