Subjects: CON, ECO
CER sets interim tolls for the expanded Trans Mountain pipeline system
CALGARY, AB, Nov. 30, 2023 /CNW/ - Today, the Commission of the Canada Energy Regulator (CER) approved preliminary interim tolls for the expanded Trans Mountain pipeline system. This decision allows the company to charge for pipeline services once expanded operations begin.
The benchmark toll, set at $11.46 per barrel, applies on an interim basis, to shippers with a 15-year contract transporting under 75,000 barrels per day from Edmonton to Burnaby. Other tolls will vary by path, length of contract and volume commitment.
The benchmark toll consists of a fixed amount of $10.88 per barrel and a variable portion of $0.58. The fixed amount was calculated using Trans Mountain's most recent expansion cost estimate. The variable amount was calculated using forecasted volumes shipped and costs such as power.
The following table compares Trans Mountain's previous and current cost estimates and the resulting fixed toll. The cost estimate is split into capped and uncapped costs. The increased estimated uncapped costs since 2017 contributed to a higher fixed toll.
2017 Estimate | Current | |
Total Cost | $7.4 billion | $30.9 billion |
Capped Costs | $5.7 billion | $21.8 billion |
Uncapped Costs | $1.8 billion | $9.1 billion |
Benchmark fixed toll | $5.76 per barrel | $10.88 per barrel |
The next step in the interim tolling process is the final interim tolls hearing that will continue throughout 2024 and include a detailed cost review. As part of the final interim tolls hearing, Trans Mountain must provide additional cost information by December 15, 2023.
Quick Facts
- The final interim tolls hearing schedule was revised on November 15, 2023.
- There are 16 registered intervenors for the final interim tolls hearing.
- Interim tolling allows a company to charge shippers to use a pipeline until it is ready to apply for and receive approval of final tolls.
- This project is the first new pipeline to transport oil to the West Coast since the original Trans Mountain pipeline in 1953.
- The expansion increases the system's capacity to 890,000 barrels from 300,000 barrels per day.
The Canada Energy Regulator (CER) works to keep energy moving safely across the country. We review energy development projects and share energy information, all while enforcing some of the strictest safety and environmental standards in the world. To find out how the CER is working for you, visit us online or connect on social media.
SOURCE Canada Energy Regulator
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