The Canadian government is set to enhance the output of the Trans Mountain oil pipeline before considering a sale of its equity. Energy Minister Tim Hodgson stated that the government will focus on maximizing the pipeline's capacity over the next few years. The government acquired the pipeline in 2018 to facilitate a significant expansion, which ultimately cost around $34 billion. The expanded pipeline began operations last year, tripling its capacity to transport crude oil from Alberta to a port near Vancouver.

Former Prime Minister Justin Trudeau, who oversaw the acquisition, had indicated that the government did not plan to retain ownership of Trans Mountain in the long term. He expressed intentions to sell it to the private sector, with a substantial equity stake likely to be allocated to Indigenous groups along the pipeline's route. Following Trudeau, Prime Minister Mark Carney's administration is expected to wait until tolling issues are resolved and additional projects are developed to further increase the pipeline's capacity.

In an interview, Hodgson emphasized the importance of optimizing output before any sale. "As somebody who spent my life in the private sector doing deals, if and when somebody’s going to sell a project, you do it when you’ve optimized the output," he said.

Shippers utilizing the Trans Mountain line have raised concerns about the tolls they are charged, claiming they are excessively high and should not be responsible for the project's cost overruns. According to Mark Maki, CEO of Trans Mountain Corp., the regulatory dispute regarding these tolls may not be resolved until late 2026 or early 2027. Ongoing discussions between companies and shippers aim to reach a settlement, with the next update anticipated by February 6.

Hodgson noted that the government seeks clarity on tolls to avoid any uncertainty that could negatively impact the sale price. Trans Mountain is also exploring various optimization projects that could increase its capacity to approximately 1.25 million barrels per day, up from the current maximum of 890,000 barrels per day. Additionally, the Vancouver Fraser Port Authority plans to dredge a waterway into the harbor to enable tankers to load more oil.

"There’s a number of very cost-effective de-bottleneck steps that can be done, which would significantly increase the production capability of the existing infrastructure," Hodgson stated. He added, "We should get that stuff done before we contemplate monetizing the value that’s been created for Canadian taxpayers."

Under Trudeau's leadership, the government began discussions with First Nations regarding the transfer of equity in the pipeline. Former Finance Minister Chrystia Freeland proposed a special-purpose vehicle to hold a stake in the pipeline, allowing Indigenous groups the opportunity to opt in. However, this plan proved complex, as the government identified over 120 Indigenous groups potentially affected by the pipeline, leading to disagreements about equity terms based on geographic proximity.

An initial meeting in Vancouver in the fall of 2023 did not yield positive results. Carney's government has yet to clarify whether it will pursue the same process for Indigenous ownership in Trans Mountain. Recently, Carney announced a memorandum of understanding with Alberta Premier Danielle Smith, which established Indigenous co-ownership as a key requirement for any new oil pipelines to the British Columbia coast. The federal government committed to using federal loan guarantees to support Indigenous co-ownership of new pipelines and potentially the carbon capture project for the oilsands known as Pathways Alliance.