Kinder Morgan’s Grand Plan to Pipe Oil Sands Crude

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From TheTyee.ca – June 2, 2011

by Mitchell Anderson

A quiet application to the National Energy Board (NEB) may soon vastly expand oil tanker traffic through the waters of Burrard Inlet, making Vancouver the major conduit of oils sands crude and bitumen to China.

Trans Mountain Pipeline, a subsidiary of Kinder Morgan that operates the 300,000 barrel per day (bpd) pipeline from Alberta to B.C. and Washington State has applied to the NEB to enter into long-term buying contracts called “firm service.”

They are also requesting to divert more Alberta crude and bitumen capacity to the Westbridge tanker terminal in Burrard Inlet and away from existing land-based refineries in B.C. and Washington. If approved, this would immediately expand crude capacity through Vancouver from 52,000 bpd to 79,000 bpd — an increase of more than 50 per cent.

Documents filed by Kinder Morgan also state that revenues from this new funding model would be used to further expand the pipeline capacity to the Burnaby tanker terminal to 450,000 bpd — a six-fold increase.

Power point reveals aims

A power point presentation for investors by Ian Anderson, president of Kinder Morgan Canada Group, provides a wealth of information that has not been widely shared with the general public or local governments:

• Kinder Morgan plans to dredge Second Narrows channel to allow larger Suezmax tankers that can carry 1 million barrels of crude — four times as much as spilled from the Exxon Valdez.

• These larger vessels will save shippers $1.50 per barrel.

• Tanker transits through Vancouver will increase to 216 per year in 2016, up from 71 in 2010 and 22 in 2005.

• Port Metro Vancouver is “supportive of expansion.”

• “Trans Mountain can be expanded in stages to access growing demand offshore in China.”

All of this is happening with remarkably little scrutiny or even awareness in the Lower Mainland. Of the 18 legal interveners in Kinder Morgan’s application, 17 are oil companies and one is from the Alberta government.

The B.C. government specifically declined to be involved in the decision that would greatly scale up tanker traffic off our coast, through our largest city. No environmental or public interest groups applied to be involved in the NEB application.

‘Rearguard’ pipeline to Kitimat

While there has been enormous interest and opposition to the proposed Enbridge Northern Gateway pipeline, this project is likely years away and must overcome pending legal challenges from several First Nations along the route.

In fact, these obstacles are being trumpeted by Kinder Morgan to their investors. They point out that expanding their existing pipeline to Vancouver is cheaper by $1.5 billion than the proposed Enbridge pipeline, and avoids mounting opposition to constructing a new right of way.

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About Damien Gillis

Damien Gillis is a Vancouver-based documentary filmmaker with a focus on environmental and social justice issues - especially relating to water, energy, and saving Canada's wild salmon - working with many environmental organizations in BC and around the world. He is the co-founder, along with Rafe Mair, of The Common Sense Canadian, and a board member of both the BC Environmental Network and the Haig-Brown Institute.