Canadian regulators approve preliminary interim tolls on expanded Trans Mountain pipeline (updated)

Canada Energy Partners

30/11/2023 22:59

(Adds details on structure of toll)
    By Nia Williams
       Nov 30 (Reuters) - The Canada Energy Regulator (CER) on
Thursday approved preliminary interim tolls for the expanded
Trans Mountain pipeline system, allowing the project to begin
charging for shipping services once operations start.
    The interim benchmark toll is set at $11.46 per barrel and
applies to shippers with a 15-year contract transporting under
75,000 barrels per day (bpd) from Edmonton to Burnaby. Other
tolls will vary by path, length of contract and volume
commitment, the CER said.
    Trans Mountain applied in June for a base toll of $11 to $12
a barrel, depending on the type of crude shipped and its
destination, but was met with opposition from a number of
contracted shippers including Canadian Natural Resources Ltd
 CNQ.TO  and Cenovus Energy  CVE.TO , who argued tolls were too
high.
    The newly approved interim benchmark toll consists of a
fixed amount of $10.88 per barrel and a variable portion of
$0.58. The fixed amount is nearly double what Trans Mountain
estimated it would be in 2017, as a result of ballooning
construction costs.
    The 590,000 bpd expansion project will nearly triple the
flow of Canadian crude to the Pacific coast, but is expected to
cost C$30.9 billion ($22.79 billion), more than four times its
original budget. 
    
($1 = 1.3558 Canadian dollars)

 (Additional reporting by Seher Dareen in Bengaluru; Editing by
Maju Samuel and Josie Kao)
 ((Seher.Dareen@thomsonreuters.com; If in India call +91 74832
70128, if within U.S. call +1 646 223 8780;))