Canada's energy regulator has approved the tolls for the Trans Mountain pipeline system, clearing the tariff framework for the expanded crude line running from Alberta to the West Coast — just as the pipeline's owner signals interest in building another West Coast pipeline.

The decision settles what shippers will pay to move barrels on the system, a question that has hung over the line since its expansion entered service. Trans Mountain Corp. had filed proposed tolls with the Canada Energy Regulator, and the regulator's approval now gives crude producers and refiners a firm cost basis for committing volumes to the line.

Why do tolls matter for a crude pipeline?

Tolls are the toll road charges of the pipeline business. For producers in the Alberta oil sands, the approved tariff directly affects the netback on every barrel shipped to the Pacific Coast. For refiners and traders booking capacity at the Westridge Marine Terminal near Vancouver, the toll sets the landed cost of Canadian crude delivered to West Coast and Asia-Pacific markets.

The Trans Mountain expansion, which entered service in 2024, roughly tripled the line's capacity to about 890,000 b/d from 300,000 b/d, giving Alberta producers meaningful access to tidewater for the first time outside of Enbridge's Mainline system to the US Midwest. The expanded line carries heavy crude, light crude and refined products.

Toll disputes on the system have had real financial consequences. Trans Mountain filed a lawsuit in 2024 seeking roughly C$1.4 billion in costs it argued should be recoverable from shippers after cost overruns on the expansion; the tolls application tested how the regulator would treat those disputed costs.

What is the new West Coast pipeline proposal?

The second development in the story is forward-looking. Trans Mountain Corp. is eyeing a new West Coast pipeline — a second line that would add capacity beyond the expanded system.

Company executives have previously floated the idea of an additional line to the British Columbia coast, contingent on securing firm shipper commitments. Any new build would require a fresh regulatory review, Indigenous consultation and a new tolling framework with the Canada Energy Regulator — a process that took years for the expansion itself.

For now, the proposal remains at the study stage. No capital cost estimate, route or capacity figure has been sanctioned.

What should shippers and refiners watch?

The watch items are straightforward:

• Whether the approved tolls hold up under any further shipper challenges or cost-recovery litigation;
• Whether Trans Mountain Corp. converts its interest in a second West Coast line into a formal open season or regulatory filing;
• Utilization levels on the expanded system, which will signal whether West Coast and Asia-Pacific demand can absorb another incremental pipeline.

The regulator's toll decision removes one layer of uncertainty from the system. The question of a second line is now the market's to answer.