HOUSTON, Feb 4 (Reuters) - Canadian pipeline operator Trans Mountain anticipates a rise in interest for shipping on its system if the United States implements tariffs in a month.
The pipeline can transport up to 890,000 barrels per day of crude from Alberta to Canada's Pacific Coast, currently operating at around 80% capacity, with 20% available for spot shipping at a higher rate.
Although Trans Mountain's crude oil exports comprise only 9% of Canada's total, the pipeline has gained attention following threats of 10% tariffs on Canadian oil imports by the United States.
The proposed tariffs, scheduled to begin on Tuesday for 30 days, could impact the approximately 4 million barrels per day that head to the United States for processing or re-export from U.S. Gulf Coast ports to Asia.
Since commencing operations in May, Trans Mountain has provided Canada with an alternate route to export more crude directly to Asia, reducing reliance on the United States.
Trans Mountain stated, We foresee heightened interest in utilizing our system with the imposition of U.S. tariffs; however, it is premature to speculate on the exact volumes, in an emailed statement.
The company expects an increase in deliveries to Asia, foreseeing potential deeper discounts for Canadian crude.
Trans Mountain is exploring ways to enhance throughput efficiency and expand the system's capacity over the next four to five years within the existing regulatory framework.
Vancouver saw an average of 370,000 barrels per day in exports over the past eight months, with 51% directed to Asia, mainly China, in 2024, while the remainder was sent to the United States.