Kinder Morgan Energy Partners said it will proceed with proposed plans for a $5bn expansion of its existing 1,150km Trans Mountain pipeline system in the US.

The move follows a recently concluded open season, in which a diverse group of existing and new shippers submitted 660,000 barrels per day (bpd) of binding commercial support for the plans.

The company has signed binding 20-year contracts to ship oil on the pipeline that offers the only west coast access for Canadian oil products, including about 90% of the gasoline supplied to the interior and south coast of British Columbia.

The proposed expansion will increase capacity on Trans Mountain from the existing capacity of 300,000 bpd to 850,000 bpd.

Kinder Morgan Canada’s president, Ian Anderson, said that the commercial support his company has received shows the market’s enthusiasm for expanding market access for Canadian crude.

"We are committed to an 18 to 24 month inclusive, extensive and thorough engagement on all aspects of the project with local communities along the proposed route and marine corridor, including First Nations and Aboriginal groups, environmental organisations and all other interested parties. We will also consider providing financial support to local communities for environmental initiatives," added Anderson.

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The preliminary scope of the proposed project includes twinning the existing pipeline with the existing right-of-way, building new pump stations along the route, increasing the number of storage tanks at existing facilities and expanding the Westridge marine terminal.

Kinder Morgan intends to file a facilities application, initiating a regulatory review with the National Energy Board in 2014.

After approval, construction is expected to commence in 2016, with the proposed project operating by 2017.

The company said that it will conduct traditional land use, environmental and socio-economic studies, as well as undertake detailed engineering and design studies.