Trans Mountain Expects to Add 90 Mb/d Capacity by Year-End

Trans Mountain Corporation announced an Open Season for additional firm service on the 890-Mb/d Trans Mountain pipeline, which will run for approximately eight weeks starting in early April. Trans Mountain estimates that 80% to 90% of current capacity could being contracted following this Open Season, implying an increase of approximately 5 to 95 Mb/d relative to the last known committed capacity figure of 707.5 Mb/d. The Company continues to expect the 90-Mb/d DRA expansion project to be completed by early 2027, and it has tightened its guidance for the size and timing of the larger Mainline Optimization Project (MOP), now proposing it would yield additional capacity of 210 Mb/d (previously up to 270 Mb/d), and be ready by year-end 2028 (previously over the next four to five years). It is unclear whether either of the two proposed capacity expansion projects are contingent upon the success of this Open Season: it appears the DRA project has been moving forward, but we would presume the more costly MOP project would require additional shipper commitments. Separately, Trans Mountain's CEO noted in a recent interview that he expects the pipeline to be nearly full in April, as demand for space on the line has jumped due to the conflict in the Middle East.