CALGARY, Alberta, Aug 23 (Reuters) - Kinder Morgan Energy Partners said on Thursday that shippers on its chronically overbooked Trans Mountain oil pipeline system between Alberta and the Pacific Coast will be limited to just 33 percent of their hoped-for volumes in September.
Kinder Morgan said the system, which carries Canadian crude to the Vancouver area and Washington state refineries, is over-nominated by 67 percent.
Increasing numbers of shippers are seeking to move oil to the Vancouver harbor, where it can be shipped to Asia and other markets offering richer returns than more traditional markets for Canadian crude such as the U.S. Midwest.
Nominations have exceeded capacity since late 2010.
The company has proposed a $4.1 billion expansion of the system that would more than double capacity to 750,000 barrels per day. It would be in service around 2017.
For September, Kinder Morgan said total nominations for the system are 290,485 bpd for the Trans Mountain pipeline, 141,001 bpd for the Puget Sound line and 78,266 bpd for the Westridge Dock.