Trans Mountain Corporation (TMC) has announced a negotiated settlement with oil shippers concerning tolling, tariffs, and service-related matters on the Trans Mountain Pipeline System. This agreement, reached after approximately 18 months of extensive engagement and good-faith negotiations, represents the substantial majority of contracted firm shipment volumes on the system. The settlement has been filed with the Canada Energy Regulator (CER) for approval.
The key aspects of the settlement include:
- **Long-Term Framework**: Establishment of a comprehensive long-term framework for tolls, tariffs, and service on the Trans Mountain Pipeline System.
- **Increased Firm Capacity**: An increase in the level of firm capacity on the system from 80% to 90% of nominal pipeline capacity.
- **Regulatory Approval**: Trans Mountain has requested CER approval of the settlement by October 1, 2026, to support implementation by January 1, 2027.
CEO Mark Maki stated, "This long-term framework provides greater certainty and predictability for customers and stakeholders while supporting Trans Mountain in connecting Canadian crude oil to global markets."
The settlement also supports the implementation of Transportation Service Agreements awarded during the 2026 Firm Contracting Open Season, which ran from April 7, 2026, to June 2, 2026. The firm capacity allocated from that process was conditional upon approval of the settlement and its associated tolling and service framework.
Trans Mountain has been operating at full capacity for consecutive months, providing Canadian producers and shippers with access to global markets through Canada's only direct sovereign pipeline route to the West Coast and Asia. The company anticipates increasing system nominal capacity, allowing for a potential increase in throughput across the system of approximately 10%, or 90,000 barrels per day, by year-end.
The settlement is expected to provide greater certainty and predictability for customers and stakeholders, supporting the long-term operation of the Trans Mountain Pipeline System.
Trans Mountain Corporation operates Canada's only pipeline system transporting oil products to the West Coast of Canada. The company has nominal capacity to deliver 890,000 barrels of petroleum products each day through a pipeline system of more than 1,180 kilometers of pipeline in Alberta, British Columbia, and 111 kilometers of pipeline in Washington State. Trans Mountain also operates a state-of-the-art loading facility, Westridge Marine Terminal, with three berths providing tidewater access to global markets.
The settlement is subject to approval by the Canada Energy Regulator, with implementation expected by January 1, 2027.