TRANS MOUNTAIN CHANGES SCOPE OF PROJECT

Trans Mountain Pipe Line Co. Ltd., Vancouver, has reduced the scope of its Low Point oil port and pipeline project designed to eliminate tanker and barge traffic in Canadian and U.S. waters east of Port Angeles, Wash. As it stands, the project will provide for inbound petroleum movements only, which will cut project cost to about $435 million from $515 million. In its latest version, the project will eliminate 300 tanker and barge shipments, Trans Mountain estimates.

Aug. 19, 1991

2 min read

As it stands, the project will provide for inbound petroleum movements only, which will cut project cost to about $435 million from $515 million. In its latest version, the project will eliminate 300 tanker and barge shipments, Trans Mountain estimates.

The company had planned to extend its U.S. pipeline system for export of Canadian crude to other U.S. and Pacific Rim markets (OGJ, Feb. 11, Newsletter).

Currently there are relatively few outbound tankers from Vancouver. However, strong growth was expected in the amount of Canadian heavy oil exports. Trans Mountain believed an outbound pipeline would reduce that potentially heavy traffic.

REASON FOR CHANGE

In preparation for an application to the Washington State Energy Facilities Site Evaluation Council, Trans Mountain held meetings with potential shippers and producers. They cited a worldwide surplus of heavy oil resulting in lower producer netbacks for export sales.

Canadian producers noted exports of heavy oil through Trans Mountain's system probably would be limited to seasonal spot sales. Trans Mountain determined that probable volumes would not justify the outbound line.

The project now includes a common use offshore terminal on the Olympic Peninsula near Low Point, Wash., with connecting pipeline systems for shipment of Alaskan and imported crude to Washington Puget Sound refineries at Anacortes, Ferndale, and Cherry Point.

Two offshore single point mooring buoys for tanker unloading and an onshore tank farm are proposed, both at Low Point, as is a 150 mile pipeline system connecting with the refineries.

Trans Mountain says its system will eliminate inbound crude oil tankers from Rosario Strait around the San Juan and Gulf Islands, an area considered difficult and congested, as well as environmentally sensitive.