Expect the latest cost estimate Much less expensive projectvalued at $12.6 billion.
In a press release, the company justifies the increase by about $9 billion from the fallout from the pandemic and floods in British Columbia. Forced natural disaster Temporary disruption of the main pipeline.
The Alberta government said the gap was understandable given the conditions caused by the flooding. It is also mentioned that the company provided equipment and labor to help the affected population in the affected areas.
Originally, the project was to cost $7.4 billion. It is now three times more expensive.
The service date for the expanded pipeline has also been pushed back by nearly a year. The company has so far stated that the pipeline will be usable in December 2022. Final construction work is now scheduled for the third quarter of 2023.
Despite these delays and cost increases, Ian Anderson, President and CEO of Trans Mountain, asserts that the project will be profitable for Canada.
According to former TC Energy Vice President Dennis McConaughey, it is It is imperative that this project be completed
.
Even with rising construction costs and their impact on the rate at which oil is transported from Edmonton to Burnaby, British Columbia, this pipeline is essential because it will increase oil sands production.
The Trans Mountain project aims to triple the capacity of the existing pipeline, increasing it from 300,000 to 890,000 barrels of oil per day.
Kinder Morgan transmission pipeline route
Photo: Radio Canada
The federal government will not inject public funds to absorb these new costs
Federal Finance Minister Chrystia Freeland says this cost increase will not be paid by the taxpayer, but by a third party, such as a financial institution.
The government has retained BMO Capital Markets and TD Securities to advise on the financial aspects of the project. Their analysis confirms that public financing of the project is a feasible option that can be implemented quickly.
as stated in the press release.
« Given that 50% of the pipeline has already been built and the risks associated with the project are reduced, the government will not spend additional public funds on the project. »
Dennis McConaughey sees the decision of the Federal Secretary of the Treasury to be wise. He believes this will provide Canadian taxpayers with a significant return on investment when sold.
The federal government intends to initiate the process of divestment once the risks associated with the expansion project have diminished and economic engagement with indigenous groups has advanced.
Federalism concludes.
However, the British Columbia Green Party leader argues that the federal government should have invested in green energy.
It is incredible that in 2022, millions of dollars are still being invested in the fossil fuel sector; I do not understand
This is Sonia Furstenau.
Sophie Laurent is a contributor to Vaughantoday.ca, covering a wide range of topics including local news, politics, business, technology, sports, entertainment, and lifestyle. She focuses on delivering clear, balanced reporting that helps readers stay informed about current events and issues that matter to their communities. Sophie is committed to presenting accurate information, practical insights, and relevant stories in a straightforward and reader-friendly manner, making complex topics accessible to a broad audience.