March 22, 2017 / 3:22 PM / 4 months ago

Kinder Morgan secures commitments for Trans Mountain after dip

1 Min Read

March 22 (Reuters) - Kinder Morgan Inc said it had booked all of the 22,000 barrels per day of capacity it had offered to the oil industry on its Canadian Trans Mountain pipeline expansion project earlier this month, following a dip in shipper commitments.

The current Trans Mountain pipeline between the oil-producing province of Alberta and the west coast is routinely oversubscribed, and the expansion has had strong support from Canadian oil sands shippers.

Kinder Morgan said two weeks ago commitment for the pipeline project had dipped 3 percent, or 22,000 barrels per day, after the U.S. pipeline company hiked tolls.

On March 9, the company offered that capacity through a so-called "open season", during which potential customers can sign up for a part of a pipeline's capacity rights.

Canada's government in November approved Kinder Morgan's plan to nearly triple the crude pipeline to 890,000 barrels per day. (Reporting by John Benny in Bengaluru; Editing by Sai Sachin Ravikumar)

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