Trans Mountain Reaches Settlement Agreement with Shippers

• Agreement establishes long-term commercial framework for tolls and service
• New Open Season offers additional capacity

Calgary, Alberta--(Newsfile Corp. - July 7, 2026) - Trans Mountain Corporation ("Trans Mountain") announced today that it has filed a negotiated Settlement with the Canada Energy Regulator ("CER") covering tolling, tariff and service-related matters on the Trans Mountain Pipeline System ("System"). The parties to the Settlement Agreement ("Settlement") represent the substantial majority of contracted firm shipment volumes on the System and reflect a broad range of commercial interests.

The Settlement, reached following approximately 18 months of extensive engagement and good-faith negotiations with shippers, establishes a comprehensive long-term framework for tolls, tariffs and service on the System, subject to CER approval. It provides greater certainty and predictability for customers and stakeholders, while supporting the long-term operation of the Trans Mountain Pipeline System.

"This Settlement provides a clear path forward for the Trans Mountain System and its customers, reflecting significant work by all parties to reach a balanced agreement," said Mark Maki, Chief Executive Officer, Trans Mountain Corporation. "This long-term framework provides greater certainty and predictability for customers and stakeholders while supporting Trans Mountain in connecting Canadian crude oil to global markets."

Global demand for Canadian crude oil remains strong and utilization of the expanded Trans Mountain System continues to reflect that demand. The System has operated at full capacity for consecutive months, providing Canadian producers and shippers with access to global markets through Canada's only direct sovereign pipeline route to the West Coast and Asia.

Settlement Supports Long-Term Certainty and Predictability

If approved by the CER, the Settlement would:

• Establish a new long-term framework for tolls and service on the System;
• Resolve all issues currently before the CER in Proceeding RH-002-2023;
• Finalize tolls for the period from May 1, 2024 to the day immediately prior to the Settlement effective date;
• Establish the future tolling framework for firm shippers and uncommitted shippers;
• Increase the level of firm capacity on the System from 80% to 90% of nominal pipeline capacity; and
• Align tolling, transportation service and commercial operating terms within a single negotiated framework.

The Settlement also supports implementation of the Transportation Service Agreements that were entered into through the 2026 Firm Contracting Open Season, which ran from April 7, 2026 to June 2, 2026. The firm capacity allocated from that process was conditional upon approval of the Settlement and its associated tolling and service framework.

Trans Mountain has requested CER approval of the Settlement Application by October 1, 2026 to support implementation of the new framework and a potential January 1, 2027 Settlement effective date. The framework would provide commercial certainty and includes tolls for 15- and 20-year Transportation Service Agreements along with opportunities for firm shippers to extend their contracts.

Open Season for Additional Capacity

"The recent Firm Contracting Open Season, which closed in early June, demonstrated strong demand for long-term transportation service on the Trans Mountain System," said Maki. "With the System running at full or near full capacity for months, our optimization program is focused on increasing capacity on existing infrastructure and providing additional competitive and reliable transportation opportunities for customers."

Through its Mainline Optimization Program, including the drag reducing agent (DRA) project and targeted facility enhancements, Trans Mountain expects to add up to 300,000 barrels per day (bpd) of incremental capacity by the end of 2028.

Having received the first regulatory permit required to advance the Program, Trans Mountain anticipates increasing System nominal capacity, allowing for a potential increase in throughput across the System of approximately 10%, or 90,000 bpd, by year-end.

The Open Season for this incremental capacity will run from July 13, 2026 to August 10, 2026 and allow prospective shippers the opportunity to secure access to a portion of this future capacity. Interested parties must execute a Confidentiality Agreement to receive Open Season documents and participate in the process. Detailed commercial terms will be provided confidentially to eligible participants.

Forward-looking information

This news release contains certain statements that constitute forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking information"). Forward-looking information is not historical fact, but instead represents the current expectations of Trans Mountain regarding future operating results and other future events relating to Trans Mountain, many of which, by their nature, are inherently uncertain and outside of the control of Trans Mountain. In some cases, forward-looking information can be identified by words or phrases such as "will", "may", "expect", "anticipate", "believe", "intend", "plan", "seek", "aim", "potential", "should", "would" and similar words or expressions.

In particular, this news release contains forward-looking information including, but is not limited to: the Settlement, including the expected effective date and the anticipated benefits of the Settlement to Trans Mountain; the increase in firm capacity on the System; the post-Settlement tolling framework and anticipated terms of the Settlement; short and long-term optimization projects, including the expected increase in pipeline capacity resulting from such projects and timing for completion of DRA and the Mainline Optimization Program; operational enhancements on system capabilities; the Open Season for incremental capacity and the timing thereof; availability of additional contracted capacity under such Open Season and expectations regarding contracted capacity following completion of the Open Season; and regulatory approvals. Actual results could differ materially from those anticipated in the forward-looking information.

The forward-looking information in this news release is based on certain factors and assumptions that Trans Mountain has made in respect thereof as at the date of this news release regarding, among other things: that all regulatory approvals in respect of the Settlement can be obtained on the necessary terms and in a timely manner; market conditions; economic conditions; prevailing governmental policies; regulatory, tax and environmental laws and regulations; inflation rates and commodity prices, including future demand for energy; future demand for space on Trans Mountain's pipeline system; regulatory processes; commercial negotiations; that any required commercial agreements can be reached in the manner and on the terms expected by Trans Mountain; that there are no unforeseen events preventing the performance of contracts or the completion of relevant projects, and that there are no unforeseen material costs relating to such projects; interest, tax and foreign exchange rates; future operating costs; and expected cash flows and availability of funds.

Although Trans Mountain believes the assumptions and other factors reflected in the forward-looking information are reasonable as of the date hereof, there can be no assurance that these assumptions and factors will prove to be correct and, as such, forward-looking information is not a guarantee of future performance. Forward-looking information is subject to a number of known and unknown risks and uncertainties that could cause actual events or results to differ materially, including, but not limited to: the regulatory environment and decisions, including the outcome of regulatory hearings and Indigenous and landowner consultation requirements; the available supply and price of energy commodities; fluctuations in operating results; Trans Mountain's ability to successfully implement its strategic priorities; the operating performance of Trans Mountain's pipelines and related assets; the ability of Trans Mountain to receive, in a timely manner, the necessary regulatory approvals in connection with the Settlement; the failure to realize the anticipated benefits of the Settlement and optimization projects; performance and credit risk of Trans Mountain's counterparties; labour and material shortages; the geopolitical environment; actions taken by governmental or regulatory authorities; changes in laws; the occurrence of unexpected events such as fires and severe weather conditions; cyber-attacks and other accidents or similar events and adverse general economic and market conditions or other risk factors, many of which are beyond the control of Trans Mountain.

The foregoing list of assumptions and risk factors should not be construed as exhaustive. The forward-looking information contained in this news release speaks only as of the date hereof. Trans Mountain does not undertake any obligation to publicly update or revise any forward-looking information contained herein, except as required by applicable laws. All forward-looking information contained in this news release is expressly qualified by this cautionary statement.

About Trans Mountain

Trans Mountain Corporation (together with its wholly-owned subsidiaries, "Trans Mountain") operates Canada's only pipeline system transporting oil products to the West Coast of Canada. Trans Mountain is a wholly owned entity of Canada TMP Finance Ltd., a subsidiary of Canada Development Investment Corporation (CDEV), the entity which holds the Government of Canada's investment in TMC. Trans Mountain has nominal capacity to deliver 890,000 barrels of petroleum products each day through a pipeline system of more than 1,180 kilometres of pipeline in Alberta, British Columbia and 111 kilometres of pipeline in Washington State. Trans Mountain also operates a state-of-the-art loading facility, Westridge Marine Terminal, with three berths providing tidewater access to global markets. As a Federal Crown Corporation, Trans Mountain continues to build on more than 72 years of experience delivering operational and safety excellence through its pipeline system.

Contact information:

Media Relations
Toll-free 1 855 908 9734
[email protected]

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304165