Kinder Morgan Energy Partners, L.P. (NYSE: KMP) on Wednesday announced that shippers have signed binding 20-year contracts for approximately 510,000 barrels per day (bpd) of capacity in support of expanding the pipeline system. Based on these finalized commitments, the proposed expansion will increase capacity on Trans Mountain from approximately 300,000 bpd to about 750,000 bpd at a projected cost of $4.1 billion.
"We are pleased to finalize these binding contracts with our shippers and to refine the preliminary scope of the proposed project," said Ian Anderson, president of Kinder Morgan Canada. "The proposed project will significantly increase market access for Canadian crude and will expand Trans Mountain by completing the twinning of the existing pipeline from Edmonton, Alberta, to Burnaby, British Columbia."
The final commitments were about 150,000 bpd less than the company announced on April 12 following the open season due to a few shippers failing to obtain their boards' approvals.
The project will continue with consultations and regulatory application preparation as previously announced.
For almost 60 years, the 1,150-km Trans Mountain pipeline system has been safely and efficiently providing the only west coast access for Canadian oil products, including about 90 percent of the gasoline supplied to the interior and south coast of British Columbia.