In a surprising move, Energy Minister Tim Hodgson has cast doubt on the Trans Mountain pipeline's request to prioritize optimization efforts ahead of launching any new major pipeline projects. This declaration comes as Prime Minister Mark Carney sets ambitious goals for Canada to establish itself as a leading energy superpower.

Hodgson stated that he does not view the optimization of the Trans Mountain pipeline as a project of national significance. "If there’s a case to be made for optimization, they will make that case, and we’ll consider it through the normal course," he said, signaling a tough stance on prioritizing new developments.

The Trans Mountain pipeline, which transports oil from Alberta to the coast of British Columbia, underwent major expansion after its federal purchase in 2018. The expansion, which started operating in May 2024, reportedly increased the pipeline’s capacity to 890,000 barrels per day, but Trans Mountain's CEO, Mark Maki, claims that optimization could push this figure to nearly 1.2 million barrels.

Maki argues that optimizing existing pipelines should be the focus. In an interview, he remarked, "It’s much harder to build another TMX somewhere. Optimize the kit that you have, which you can do in steps over time, and then add capacity as needed." Currently, the pipeline operates at about 85% of its maximum capacity.

British Columbia Premier David Eby supports this sentiment, emphasizing that Canada should maximize the existing capacity of the Trans Mountain pipeline before launching new oil pipeline projects in the province.

Meanwhile, Conservative Leader Pierre Poilievre backed the idea of optimizing Trans Mountain, asserting that it is an essential step but not a complete solution. He insisted, "We have the capacity to pipe two or three million additional barrels of oil to overseas markets. Let’s do all of it!" He also suggested that Maki might be trying to diminish competition in the market.

In contrast, Alberta Premier Danielle Smith is advocating for a new bitumen pipeline from Alberta to British Columbia's northern coast, aiming for an additional million barrels per day. Alberta’s Energy and Minerals Minister Brian Jean echoed this ambition, expressing support for fully utilizing the current pipeline while simultaneously building a new one.

Maki explained that there are cost-effective strategies to enhance the Trans Mountain pipeline’s capacities. "This involves adding pumps and motors in existing and potentially new locations, along with necessary power infrastructure," he stated, revealing ongoing evaluations to boost oil shipment capacity.

An analysis from Alberta Central's chief economist, Charles St-Arnaud, indicates that the Trans Mountain pipeline has been instrumental in reducing the discount on Alberta oil prices, resulting in an additional $2 billion in revenue for the federal government.