Company 'tests' oil pipeline expansion

Friday, February 04, 2011

Burnaby Now

Kinder Morgan is eyeing plans to expand capacity of its Trans Mountain pipeline, which runs crude and refined oil products from Edmonton to Burnaby.

"We believe that the market is showing us signals that it may be ready to initiate expansion activities, and we'll test that next fall," said company spokesperson Lexa Hobenshield.

Kinder Morgan has mulled over expanding the pipeline in the past, but any increase in capacity would depend on market demand.

"What has changed is we think there is more interest at this point," Hobenshield said. "We're seeing signals that the market may be ready."

Over the past several months, companies have wanted to ship more oil than what the pipeline can handle. Later this year, Kinder Morgan plans to conduct an "open season," which is a call for agreements to ship additional oil products to see if there is enough interest that would support an expansion.

"If there is, then we put together a plan for a consultation," Hobenshield said.

It may be five years before construction starts, and that's only if the plan is approved, she added.

Hobenshield said the possible expansion may mean more tanker traffic around Vancouver.

"It depends on who comes to us and says we want more product," Hobenshield said.

Oil transported through the pipeline goes to refineries in Washington State, Greater Vancouver or the Westridge marine terminal in Burnaby, just east of the refinery. It's the marine terminal, where oil tankers fill up, that Hobenshield is expecting more business.

"We believe the next increase or expansion will be to serve traffic, product moving over the dock. But we don't know that at this point until we have somebody who says we're interested and we support this, we wont know for sure," Hobenshield said.

The 1,150-kilometre Trans Mountain pipeline runs from Edmonton to Burnaby, and is twinned in some areas. To increase shipping capacity, Kinder Morgan would have to twin more sections of the existing line. The pipeline's maximum capacity is now at 300,000 barrels a day, but the most it could handle if fully expanded is up to 700,000 barrels.

"We know we can't get any more out of it than that," Hobenshield said.

But, she added, they will likely expand to 80,000 barrels a day at first and possibly add more capacity, depending on demand.

The Wilderness Committee begin_of_the_skype_highlighting     end_of_the_skype_highlighting is raising concerns about the possible expansion.

"We will stand up and mobilize the already widespread opposition to Kinder Morgan's pipeline plans," said Ben West, the group's healthy communities campaigner. "The threat of an oil spill is enough to convince most Vancouverites that this is a bad idea, since none of us wants to see crude oil washing up on the beach as we walk around the seawall at Stanley Park."

West said a pipeline expansion would make the existing threat of tanker traffic in Burrard Inlet "exponentially worse."

"At a fundamental level, I think there's a reason they are doing this so quietly. ... I think the public would be opposed," West said, adding he would like to see public consultation on the expansion.

Hobenshield said it's important to know that Kinder Morgan has the same objectives.

"We don't want to see an oil spill. We don't want that," she said, adding they have lots of measures in place to ensure that doesn't happen.

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