Understanding the Trans Mountain Expansion: Impact on Alberta Oil Producers
With TMX now fully operational, Alberta producers are seeing improved market access and better crude pricing. We look at what this means for production investment and equipment demand.
The Trans Mountain Expansion (TMX) pipeline reached full operation in 2024, marking a transformative moment for Alberta's oil and gas industry. For the first time in years, Alberta producers have meaningful tidewater access, unlocking Asian markets and improving crude price realizations.
What TMX means for Alberta operators:
Improved Netbacks – Alberta heavy oil (WCS) has historically traded at a deep discount to WTI due to pipeline constraints. With TMX in service, that discount has narrowed significantly, improving economics for operators across the province.
Production Incentive – Better pricing encourages drilling and production increases. We're already seeing upticks in new well licenses and facility tie-in projects across the Montney, Peace River Arch, and heavy oil belts.
Infrastructure Investment – Production growth requires infrastructure. Storage tanks, treaters, separators, and processing equipment are all seeing renewed demand as operators bring new volumes online.
Inclusive Energy is positioned to support Alberta's production growth with our large inventory and fabrication capabilities. Whether you need a single storage tank or a complete turnkey facility, our team is ready to deliver.
Contact us at 403-444-6897 to discuss your project requirements.