Trans Mountain, Canada’s controversial new oil pipeline, goes into service

The Trans Mountain pipeline, which will significantly increase Canada's oil transport capacity, is finally operational, sparking debate and controversy.

Share:

Pipeline Trans Moutain mise en service

The Trans Mountain oil pipeline, connecting central Canada to its west coast, went into operation this Wednesday, after several delays. This pipeline is the first major one to be built in Canada in decades, a country that ranks fourth among the world’s crude oil exporters. As Alberta celebrates this breakthrough, environmentalists and aboriginal communities are voicing strong opposition. Fears of oil spills and their impact on orcas in the Pacific are at the heart of concerns. This situation highlights the challenges of reconciling economic growth with environmental responsibility.

Economic consequences and criticism

The cost of the project, initially estimated at C$7.4 billion, has ballooned to a potential C$34 billion. Critics, including the Parliamentary Budget Officer, call the project a financial loss, pointing out that construction costs are higher than the anticipated added value. This raises questions about the long-term economic viability of such investments.

Geopolitical and energy implications

The impact of the new pipeline on global energy geopolitics is also something to keep an eye on. According to Pierre-Olivier Pineau, while the pipeline won’t radically alter the global energy balance, it will reduce dependence on Middle Eastern suppliers, offering new alternatives. This change could slightly reorient global energy power dynamics.

The challenges of reconciliation with indigenous communities

Pipeline construction has exacerbated tensions with Aboriginal communities, jeopardizing the Trudeau government’s reconciliation efforts. Managing these relationships and the need for a more inclusive approach have become central issues in Canadian politics, highlighting the complications inherent in natural resource management.

A climate perspective on industrial reality

The project runs counter to Canada’s climate objectives, which aim to significantly reduce greenhouse gas emissions. Jean-Philippe Sapinski underlines the pipeline’s incompatibility with a genuine ecological transition, pointing to the challenges of aligning environmental ambitions with industrial interests.

The inauguration of the new Trans Mountain pipeline represents a turning point for the Canadian oil industry, but raises profound questions about the balance between economic progress and environmental conservation, as well as the social and financial implications of such projects.

The expansion of the global oil and gas fishing market is accelerating on the back of offshore projects, with annual growth estimated at 5.7% according to The Insight Partners.
The Competition Bureau has required Schlumberger to divest major assets to finalise the acquisition of ChampionX, thereby reducing the risks of market concentration in Canada’s oilfield services sector. —
Saturn Oil & Gas Inc. confirms the acquisition of 1,608,182 common shares for a total amount of USD3.46mn, as part of its public buyback offer in Canada, resulting in a reduction of its free float.
OPEC slightly adjusts its production forecasts for 2025-2026 while projecting stable global demand growth, leaving OPEC+ significant room to increase supply without destabilizing global oil markets.
Talks between European Union member states stall on the adoption of the eighteenth sanctions package targeting Russian oil, due to ongoing disagreements over the proposed price ceiling.
Three new oil fields in Iraqi Kurdistan have been targeted by explosive drones, bringing the number of affected sites in this strategic region to five in one week, according to local authorities.
An explosion at 07:00 at an HKN Energy facility forced ShaMaran Petroleum to shut the Sarsang field while an inquiry determines damage and the impact on regional exports.
The Canadian producer issues USD 237 mn in senior notes at 6.875 % to repay bank debt, repurchase USD 73 mn of 2027 notes and push most of its maturity schedule to 2030.
BP revised upwards its production forecast for the second quarter of 2025, citing stronger-than-expected results from its US shale unit. However, lower oil prices and refinery maintenance shutdowns weighed on overall results.
Belgrade is engaged in complex negotiations with Washington to obtain a fifth extension of sanctions relief for the Serbian oil company NIS, which is majority-owned by Russian groups.
European Union ambassadors are close to reaching an agreement on a new sanctions package aimed at reducing the Russian oil price cap, with measures impacting several energy and financial sectors.
Backbone Infrastructure Nigeria Limited is investing $15bn to develop a 500,000-barrel-per-day oil refinery in Ondo State, a major project aimed at boosting Nigeria’s refining capacity.
The Central Energy Fund’s takeover of the Sapref refinery introduces major financial risks for South Africa, with the facility still offline and no clear restart strategy released so far.
PetroTal Corp. records production growth in the second quarter of 2025, improves its cash position and continues replacing key equipment at its main oil sites in Peru.
An explosion caused by a homemade explosive device in northeastern Colombia has forced Cenit, a subsidiary of Ecopetrol, to temporarily suspend operations on the strategic Caño Limón-Coveñas pipeline, crucial to the country's oil supply.
U.S. legislation eases access to federal lands for oil production, but fluctuations in crude prices may limit concrete impacts on investment and medium-term production, according to industry experts.
Permex Petroleum Corporation has completed a US$2mn fundraising by issuing convertible debentures, aimed at strengthening its cash position, without using intermediaries, and targeting a single institutional investor.
Petróleos de Venezuela S.A. (PDVSA) recorded $17.52bn in export sales in 2024, benefiting from increased volumes due to U.S. licences granted to foreign partners, according to an internal document seen by Reuters.
The detection of zinc in Mars crude extracted off the coast of Louisiana forced the US government to draw on its strategic reserves to support Gulf Coast refineries.
Commissioning of a 1.2-million-ton hydrocracking unit at the TANECO site confirms the industrial expansion of the complex and its ability to diversify refined fuel production.