Win-Win-Win: What the TMX Expansion Means For Canada And Its Allies

The expanded Trans Mountain Pipeline is expected to launch May 1st.

After many years of regulatory hurdles, the $34B project is finally set to be completed. This export pipeline will facilitate the shipment of Canadian oil to Canada’s allies and countries worldwide, which is a game changer for Canada’s energy sector.

The proposed expansion project entails duplicating the existing 1,150-kilometre Trans Mountain pipeline that links Alberta and British Columbia, alongside improvements to the system’s export facilities. Originally established in 1953, the current pipeline can handle roughly 300,000 barrels per day. Once completed, the new pipeline will have the capability to transport an additional 590,000 barrels per day.

Reportedly, “the main goal of the pipeline is to ensure Canadian oil producers get better prices for their product.”

However, there is so much more to it than that.

Importantly, the pipeline will make it easier for Canada to supply its allies across the globe with responsibly-produced oil.

Global oil demand is strong and growing. Contrary to common belief, the latest findings reveal that the increasing popularity of EVs won’t result in growing global oil consumption levels to run out of gas anytime soon.

Current demand projections by the IEA, Wood Mackenzie, S&P Global, and others suggest oil consumption will continue to grow for many years despite the advancement of EVs into many economies worldwide. As long as the world needs oil and gas, Canada’s responsible and reliable producers should be the go-to suppliers. 

The TMX expansion project helps achieve this. 

The pipeline “soon will be carrying more oil that will be shipped to Asian buyers, and to U.S. refineries. And those U.S. refineries will — good news for Canada — be paying more for it.”

The expansion project is set to triple the capacity of the Trans Mountain pipeline system, incorporating an additional 590,000 barrels per day. This augmented capacity offers the flexibility to transport oil to the United States via pipeline or to various overseas destinations, facilitated by tanker transport.

And that’s the point.

Amidst rising geopolitical tensions and risks worldwide, Canada’s allies are looking for a reliable, ethical and responsible energy supplier.

The world is asking for Canadian oil and gas. With the expanded TMX pipeline, it will be even easier for us to supply them with responsible energy that meets their needs, contributing to strengthening energy security for all.

Additionally, the pipeline will help create Canadian jobs. As Prime Minister Justin Trudeau conveyed in 2019, the Trans Mountain Expansion means “creating good, middle class jobs [and] getting [Canada’s resources to the market.”

Indeed, the project will generate thousands of Canadian jobs, and it will benefit Indigenous peoples. 

“Trans Mountain says that to date, the project and its contractors have hired more than 6,590 people, more than 600 of whom are Indigenous,” the Canadian Energy Centre reported in 2020.

“Including direct, indirect and induced jobs, Trans Mountain expects that during construction the total workforce will reach the equivalent of 15,000 jobs per year, followed by the equivalent of a further 37,000 jobs per year of operations.”

Those are Canadian jobs.

Overall, the trans-mountain pipeline expansion is a win-win-win for everyone, from industry, to Canadians and Canada’s allies.

The world is asking for Canadian oil and gas. It’s time to go full speed ahead!

About The Author: