Page 27 - August 19, 2019
P. 27
THE WEEKLY ANCHOR
PAGE 18 MONDAY NOVEMBER 6, 2017
THE WEEKLY ANCHOR MONDAY AUGUST 19, 2019 PAGE 27
A Monthly update on the Oil & Gas and Energy Industry
ENERGY EDUCATION IN ACTION
Update: August 2019 Capacity Announcement
for the Trans Mountain Pipeline System
Total system nominations for the Trans volumes that haven’t completed their transit of existing Trans Mountain Pipeline, it’s one
Mountain Pipeline system are apportioned the pipeline by month’s end. signal that more capacity is needed.
by 34 per cent for August 2019. Based on available pipeline capacity and Apportionment can bring with it a
the volume of shipper nominations we discounting of prices as producers compete
What is pipeline ‘apportionment’ and received, we calculate apportionment using a to sell what they can through the pipeline
continued from page 26 why is it important? method accepted by the National Energy Board before having to use another pipeline or
and forming part of our tariff. A tariff includes other modes of transport to another, less
The energy sector around the world works the terms and conditions under which the profitable market. It can also mean the
on a monthly cycle. The Trans Mountain service of a pipeline is offered or provided, buyers at the end of the pipeline are forced
Pipeline is part of that cycle. including the tolls, the rules and regulations, to source their shortfall of supply from
Apportionment describes the amount of and the practices relating to specific services. alternate, less desirable sources.
demand shippers place on the pipeline in If shipper nominations are less than
excess of its available capacity. Here’s a pipeline capacity, the apportionment Business case for expansion is strong
step-by-step guide to the apportionment percentage to that destination is “zero” and all
Tim McMillan determination that’s carried out every the product volumes nominated by shippers are There is a strong and clear business case
President and CEO month for the existing Trans Mountain accepted to be transported that month. supporting the Trans Mountain Expansion
Canadian Association of Petroleum Producers Pipeline system. If shipper nominations exceed pipeline Project. Our shippers have made long-term
capacity, the apportionment is a percentage contract commitments ranging from 15 to
Each month our shippers submit greater than zero. 20 years that will underpin the cost of
requests for how much petroleum (crude oil construction and the operating costs. The
and refined products) they want to ship Trans Mountain Pipeline apportionment additional capacity offered by the
through the pipeline to service their by the numbers expansion will be used to supply more
customers. These requests are called crude oil and refined products markets in
‘nominations’. Apportionment of the Trans Mountain British Columbia and Washington State
Based on shippers’ nominations, we Pipeline system has been a regular monthly and to offshore markets in the Asia Pacific.
then determine the ‘capacity’ available on occurrence for the past decade. The chart Pipeline design and operations, including
the pipeline for the month. Determining below shows the average levels of emergency response and preparedness for
pipeline capacity is complex. Capacity is apportionment for 2016, 2017, 2018 and tanker movements are world-class,
affected by, among other things, the types monthly apportionment for 2019. providing a safe and reliable supply of
of products that have been nominated, any petroleum products to the markets served
pipeline system maintenance activities that When a pipeline experiences significant and by the Trans Mountain Pipeline.
will reduce flows that month and carry-over prolonged apportionment like in the case of the
Industry supporters of responsible energy
Specializing in pipeline construction, facility constructions,
maintenance, abandonments and compression projects
780-728-0004 4515 2nd Avenue
PAGE 18 MONDAY NOVEMBER 6, 2017
THE WEEKLY ANCHOR MONDAY AUGUST 19, 2019 PAGE 27
A Monthly update on the Oil & Gas and Energy Industry
ENERGY EDUCATION IN ACTION
Update: August 2019 Capacity Announcement
for the Trans Mountain Pipeline System
Total system nominations for the Trans volumes that haven’t completed their transit of existing Trans Mountain Pipeline, it’s one
Mountain Pipeline system are apportioned the pipeline by month’s end. signal that more capacity is needed.
by 34 per cent for August 2019. Based on available pipeline capacity and Apportionment can bring with it a
the volume of shipper nominations we discounting of prices as producers compete
What is pipeline ‘apportionment’ and received, we calculate apportionment using a to sell what they can through the pipeline
continued from page 26 why is it important? method accepted by the National Energy Board before having to use another pipeline or
and forming part of our tariff. A tariff includes other modes of transport to another, less
The energy sector around the world works the terms and conditions under which the profitable market. It can also mean the
on a monthly cycle. The Trans Mountain service of a pipeline is offered or provided, buyers at the end of the pipeline are forced
Pipeline is part of that cycle. including the tolls, the rules and regulations, to source their shortfall of supply from
Apportionment describes the amount of and the practices relating to specific services. alternate, less desirable sources.
demand shippers place on the pipeline in If shipper nominations are less than
excess of its available capacity. Here’s a pipeline capacity, the apportionment Business case for expansion is strong
step-by-step guide to the apportionment percentage to that destination is “zero” and all
Tim McMillan determination that’s carried out every the product volumes nominated by shippers are There is a strong and clear business case
President and CEO month for the existing Trans Mountain accepted to be transported that month. supporting the Trans Mountain Expansion
Canadian Association of Petroleum Producers Pipeline system. If shipper nominations exceed pipeline Project. Our shippers have made long-term
capacity, the apportionment is a percentage contract commitments ranging from 15 to
Each month our shippers submit greater than zero. 20 years that will underpin the cost of
requests for how much petroleum (crude oil construction and the operating costs. The
and refined products) they want to ship Trans Mountain Pipeline apportionment additional capacity offered by the
through the pipeline to service their by the numbers expansion will be used to supply more
customers. These requests are called crude oil and refined products markets in
‘nominations’. Apportionment of the Trans Mountain British Columbia and Washington State
Based on shippers’ nominations, we Pipeline system has been a regular monthly and to offshore markets in the Asia Pacific.
then determine the ‘capacity’ available on occurrence for the past decade. The chart Pipeline design and operations, including
the pipeline for the month. Determining below shows the average levels of emergency response and preparedness for
pipeline capacity is complex. Capacity is apportionment for 2016, 2017, 2018 and tanker movements are world-class,
affected by, among other things, the types monthly apportionment for 2019. providing a safe and reliable supply of
of products that have been nominated, any petroleum products to the markets served
pipeline system maintenance activities that When a pipeline experiences significant and by the Trans Mountain Pipeline.
will reduce flows that month and carry-over prolonged apportionment like in the case of the
Industry supporters of responsible energy
Specializing in pipeline construction, facility constructions,
maintenance, abandonments and compression projects
780-728-0004 4515 2nd Avenue
