Kinder Morgan subsidiary applies to ship more crude oil through Burrard Inlet

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      A major pipeline company wants to move more tar-sands oil to the Westridge marine terminal in Burnaby for shipment through Burrard Inlet.

      Trans Mountain Pipeline L.P., which is owned by U.S. energy giant Kinder Morgan, is seeking the National Energy Board's approval to ship more oil to the terminal for export and less oil to land-based customers.

      The company wants to reallocate 27,000 barrels of oil per day to Westridge terminal—which is slightly more than a 50-percent increase over the current allocation cited in its application to the NEB.


      B.C.-born Pamela Anderson supports a ban on tanker traffic on the coast.

      In July 2005, the pipeline's capacity was 225,000 barrels per day. As a result of a request to the NEB in 2006, it was permitted to increase this to 260,000 barrels per day.

      Trans Mountain then increased this again to 300,000 barrels per day in 2008.

      "Each of these expansions (collectively, "TMX-1") was required to address existing capacity constraints and increase the ability for Canadian producers and marketers to access West Coast and offshore markets," Trans Mountain states in its application.

      Currently, 52,000 barrels per day are allocated to the Westridge marine terminal, according to the company's application; the remaining 248,000 barrels per day are allocated to land-based refineries.

      But in a presentation to investors , Kinder Morgan Canada president Ian Anderson declared that a historic monthly record of 143,000 barrels per day were shipped to the terminal and transported aboard tankers through Burrard Inlet in April 2010. The annual average in 2010 was 80,000 barrels per day going through Port Metro Vancouver.

      This suggests that the company is already sending much more oil to its sea-based terminal, perhaps because demand has diminished at refineries in B.C. and Washington state.

      "Shipments through Westridge commenced in 1956," the company mentions. "At Westridge, crude petroleum is loaded aboard ocean-going vessels ranging in size from 10,000 dead weight tonnes ("dwt") to 110,000 dwt and exported to the U.S. and other offshore markets."

      According to Trans Mountain, there is a growing demand from shippers for "firm service".

      "This will lead directly to pricing of Canadian crude in offshore markets that is more beneficial to the producer and that will result in increased netbacks to producers," the company declares. "Trans Mountain anticipates that shippers will in the future commercially support expansion of the Pipeline under similar firm service arrangements as contemplated by this Application. Such expansion of Firm Service will be important for producers who are investing large amounts of capital in order to grow crude oil production."

      In other words, get ready for applications in the future to expand pipeline capacity, so that more crude oil can be shipped through Port Metro Vancouver to the U.S. and other foreign markets.

      According to Anderson's presentation, the number of crude-tanker arrivals at Port Metro Vancouver has risen from 22 in 2005 to approximately 71 in 2010. That's forecast to rise to 288 tanker arrivals by 2016.

      Follow Charlie Smith on Twitter at twitter.com/csmithstraight.

      Comments

      6 Comments

      Chet

      Jun 5, 2011 at 7:44pm

      and the pipeline that carries it all goes right through Coquihalla canyon, prone to rockslides. an open section of pipe runs right along the river at about Iago. Don't give Enbridge anything. And Christy, Seaspan is owned by an American. Wrong Again !
      The BC fire sale continues Gordo !

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      ?

      Jun 5, 2011 at 8:05pm

      The mindless greed of these individuals has no limits.

      Lower mainland residents must do everything in our power to prevent this from happening.

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      devils advocate

      Jun 6, 2011 at 10:53am

      you goofs are almost as bad as The Tyee now.....

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      KPod

      Jun 6, 2011 at 11:25am

      Maybe the local bike riders could bike the barrels around to help pay for the bike lanes. Just my 2 cents.

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      Chet

      Jun 6, 2011 at 5:35pm

      i like being called a goof !

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      glen p robbins

      Jun 12, 2011 at 9:35am

      Probably don't want this to happen

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