VANCOUVER, British Columbia, Feb 27 (Reuters) - Canadian oil and natural gas producers will spend an estimated C$40.6 billion ($30.07 billion) on capital projects this year, up slightly from C$39 billion last year, the Canadian Association of Petroleum Producers (CAPP) said on Tuesday.

Producers are staying disciplined with spending even as Canadian oil production is at record-high levels ahead of the expected completion of the Trans Mountain oil pipeline expansion in the second quarter, CAPP CEO Lisa Baiton said. ($1 = 1.3502 Canadian dollars) (Reporting by Rod Nickel in Vancouver, British Columbia)