Kinder Morgan Trans Mountain Pipeline

Kinder Morgan Trans Mountain Pipeline
Name	Trans Mountain Pipeline
Owner	Kinder Morgan Canada (until 2018), Canadian government (since 2018), Pembina Pipeline (investor groups)
Type	Oil pipeline
Length km	1150
Start	Edmonton
End	Burnaby
Established	1953
Capacity bpd	300000 (original), 890000 (expanded)

Kinder Morgan Trans Mountain Pipeline

The Trans Mountain Pipeline is a petroleum transport system linking Edmonton and Burnaby that carries crude oil and refined petroleum products through Alberta, British Columbia, and terminates at tanker facilities on the Pacific Ocean. The system has been the focus of debates involving Canadian federal authorities, provincial administrations such as the Government of Alberta and the Government of British Columbia, Indigenous nations including the Tsleil-Waututh Nation, and energy companies like Kinder Morgan and later owners and investors. Its operations intersect with major North American energy markets including participants such as Suncor Energy, Canadian Natural Resources Limited, Imperial Oil, and international importers and shippers in Asia.

Introduction

Commissioned in 1953, the Trans Mountain system originally connected oilfields in Alberta and refining hubs to marine export points near Vancouver for shipment to markets including Japan, China, and South Korea. The pipeline has been central to debates involving federal institutions like the National Energy Board and later the Canada Energy Regulator, provincial actors such as the Alberta Energy Regulator, environmental organizations including Greenpeace and the David Suzuki Foundation, as well as Indigenous nations asserting title and rights under decisions like Tsilhqot'in Nation v. British Columbia. The project has drawn scrutiny from multinational investors, shipping firms, and trade partners active in the Trans-Pacific Partnership discussions.

History and Ownership

Built by a consortium led by Imperial Oil and Shell Canada and completed under government-licensed operations in 1953, ownership evolved through mergers and acquisitions involving firms such as Canadian Pacific Limited and Enbridge-related interests. In the 2000s, Kinder Morgan acquired the system, operating as Kinder Morgan Energy Partners and Kinder Morgan Canada. In 2018, facing regulatory delays and provincial opposition led by figures like John Horgan and interventions tied to the 2017 provincial government, Kinder Morgan announced potential divestiture; subsequently the Government of Canada purchased the pipeline, involving finance decisions debated in the House of Commons of Canada and fiscal analyses by the Parliamentary Budget Officer. Ownership since the purchase has included federal Crown corporations and investor consortia with stakes from entities such as Caisse de dépôt et placement du Québec and other institutional investors.

Pipeline Route and Infrastructure

The pipeline traverses major corridors from the Athabasca and Cold Lake regions near Edmonton through terrain including the Rocky Mountains, foothills of British Columbia, and densely populated corridors approaching Vancouver. Key infrastructure includes pumping stations, storage terminals, and the Westridge Marine Terminal in Burnaby designed for Aframax-class tankers serving global routes to ports like Kitimat or transshipment in the Strait of Juan de Fuca. The route crosses multiple rivers and ecosystems subject to permits from agencies including the Transport Canada and environmental assessments overseen by bodies like the Canadian Environmental Assessment Agency (pre-2012) and the Impact Assessment Agency of Canada (post-2019).

Expansion Project (Trans Mountain Expansion)

The Trans Mountain Expansion Project (TMX) sought to twin large sections of the existing pipeline to increase capacity from about 300,000 barrels per day to roughly 890,000 barrels per day, enabling increased exports to Asia-Pacific markets. The expansion required regulatory approvals from the NEB (replaced by the Canada Energy Regulator) and consultations with Indigenous nations including litigants such as the Tsleil-Waututh Nation and the Squamish Nation, along with municipal stakeholders like the City of Burnaby and provincial governments. Construction contracts involved engineering and construction firms and procurement processes influenced by commodity prices tied to benchmarks such as Western Canadian Select and global indices including Brent crude oil price.

Environmental and Indigenous Issues

Environmental organizations including Friends of the Earth and Sierra Club highlighted risks of marine oil spills affecting habitats used by species listed under the Species at Risk Act such as populations of southern resident killer whales and salmon runs in watersheds like the Fraser River. Indigenous nations including the Tsleil-Waututh Nation, Leq'a:mel First Nation, Musqueam Indian Band, Squamish Nation, and Secwepemc peoples raised claims related to Aboriginal title and rights, referencing precedents such as R v. Sparrow and Delgamuukw v British Columbia. Protests and blockades drew support from conservation groups and labor organizations including the B.C. Federation of Labour, while international environmental diplomacy angles engaged bodies like the International Maritime Organization over tanker traffic.

Regulatory and Legal Proceedings

The pipeline and expansion faced multiple judicial reviews, appeals, and orders from courts including the Federal Court of Appeal and interventions referencing constitutional principles adjudicated by the Supreme Court of Canada in other resource and Indigenous law cases. Regulatory bodies involved in approvals included the National Energy Board, the Canada Energy Regulator, and provincial regulators such as the British Columbia Oil and Gas Commission in cross-jurisdictional disputes that invoked clauses of the Constitution Act, 1867 and administrative law precedents like Baker v Canada (Minister of Citizenship and Immigration). Litigation addressed issues ranging from duty to consult Indigenous nations to environmental assessment adequacy and municipal permitting powers, with rulings that shaped subsequent consultation protocols and mitigation requirements.

Economic Impact and Operations

The pipeline influences Canadian energy market dynamics involving producers such as Cenovus Energy, Husky Energy, and EnCana Corporation (now Ovintiv), affecting price differentials like the Western Canadian Select discount versus international benchmarks including WTI crude oil price. Economic analyses considered employment impacts in construction phases, taxation and royalty revenue to provincial treasuries like Alberta Treasury Branches and federal fiscal projections debated in the Budget of Canada, as well as port and shipping revenues connected to terminal operations in Metro Vancouver and trade with partners including China National Offshore Oil Corporation and multinational shippers. Operational oversight includes pipeline integrity programs, emergency response coordination with agencies such as Fisheries and Oceans Canada and municipal responders, and insurance arrangements negotiated with global insurers and credit institutions.

Category:Oil pipelines in Canada