Canada's 590,000 b/d Trans Mountain Expansion (TMX) crude pipeline to the Pacific coast could be delayed by another two years if a variance in construction is not allowed, the operator said today.
Trans Mountain is seeking the use of a smaller 30-inch pipe for a difficult part of the route where hard rock and several "complex" challenges have been encountered. As it stands, Trans Mountain is boring a 48-inch space to install a 36-inch pipe, but that effort is causing premature wear on tools and bedrock fractures resulting in water entering the space.
"These complications are expected to get materially worse," federally-owned said Trans Mountain in a filing to the Canadian Energy Regulator (CER) today. TMX will "likely be delayed by approximately two years and Trans Mountain will suffer billions of dollars in losses."
A 42-inch ream to allow for the smaller pipe is "critical" to progressing the project, with Trans Mountain still aiming for an in-service date of late in the first quarter 2024. The CER denied a similar request for a smaller diameter pipe on 5 December, but did not disclose its reasoning. Trans Mountain acknowledged that, saying that this new and more comprehensive application filed on Thursday will show it is in the public interest to avoid a lengthy delay.
Trans Mountain is asking for regulatory approval no later than 9 January, so dependent work can stay on track.
The smaller pipeline would have no impact on capacity of the expanded system, partly because it could increase the pressure a "small" amount at a pressure-reduction station upstream of the section, according to Trans Mountain.
The section at the heart of the issue is known as Mountain 3 horizontal directional drill (HDD), and is about 2,300 metres (7,500 feet) in length. It is about 100 kilometres east of Vancouver, British Columbia, near the town of Hope.
Trans Mountains' current plan shows the line would be ready for line fill on 19 March.
