The Trans Mountain expansion project would triple the capacity of the existing pipeline between Edmonton and a shipping terminal in Burnaby, B.C. (Canadian Press file images)

Trans Mountain pipeline expansion cost jumps 70% to $12.6 billion

The estimate of $7.4 billion was made in 2017 by the previous owner

The cost to build the Trans Mountain pipeline expansion has jumped by 70 per cent to $12.6 billion from a three-year-old estimate of $7.4 billion.

President and CEO Ian Anderson says the company owned by the federal government has spent $2.5 billion to date, including the impact of delays and additional regulatory processes, leaving an additional $8.4 billion needed to complete the project, plus $1.7 billion of financial carrying costs.

He says the project is now expected to be in service by December 2022.

The estimate of $7.4 billion was made in 2017 by the previous owner, Houston-based Kinder Morgan, Inc., which sold the expansion project and the existing pipeline to the federal government in 2018 for $4.5 billion.

Opponents have attacked the greenhouse gas emission and oil spill risks of the pipeline project but they’ve also charged it will be a money-loser with unproved markets in Asia that will fail financially and leave the public holding the bag.

ALSO READ: Opponents in B.C. to ramp up protests against Trans Mountain pipeline

Anderson says the company is recommending that Ottawa, as owner and lender, set aside a further $600 million reserve for cost impacts beyond the control of Trans Mountain.

Opponents of the pipeline expansion have vowed to do whatever it takes to stop the project despite losing a legal challenge before the Federal Court of Appeal earlier this week.

The four First Nations who lost the court challenge on Tuesday have 60 days to seek leave to appeal to the Supreme Court of Canada.

The expansion project would triple the capacity of the existing pipeline between Edmonton and a shipping terminal in Burnaby, B.C.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Trans Mountain pipeline

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Central Alberta Pregnancy Care Centre to host fundraising banquet in Stettler

Centre looking to expand its range of services to local region

Provincial Fair Deal Panel comes to Lacombe

Panel asks whether Alberta is getting a fair deal in confederation

On Feb. 26th, practice kindness and wear pink to symbolize that you do not tolerate bullying

Bullying is a major problem in our schools, workplaces, homes, and online

Town of Castor and Covenant Health working together to address helipad deficincies

This work is coming after a late 2019 review of the Castor helipad

Catholic Women’s League celebrates a century at the national level

Eight hand-made quilts were presented for use in the hospital’s palliative care room

Pipeline dispute: Tories put no-confidence motion on House of Commons agenda

Conservatives say they have no confidence in the Trudeau government to end the rail blockades

Carbon risk for Alberta’s public pension manager questioned

AIMCo says nearly $115 billion invested in carbon-intensive industries is on par with other funds

Worker, shocked at future Amazon warehouse in Nisku, has died: family

Colton Quast, 25, was taken to hospital and put in a medically induced coma

Blockade supporting Wet’suwet’en hereditary chiefs on rail line in Edmonton

‘Cuzzins for Wet’suwet’en’ post pics of wooden crates on line, signs saying ‘No Pipelines on Stolen Land’

Higher costs should kill Trans Mountain pipeline, federal opposition says

Most recent total was $12.6 billion, much higher than a previous $7.4-billion estimate

Trudeau says Wet’suwet’en crisis, rail blockades a critical moment for country

First Nations leaders suggest it may be time to peacefully end the blockades

AFN national chief calls for calm on Wet’suwet’en crisis, rail blockades

Hereditary chiefs in the Wet’suwet’en First Nation oppose the natural-gas pipeline

Federal, B.C. ministers seek meeting with Wet’suwet’en in hope of blockade solution

Coastal GasLink signed agreements with all 20 elected band councils along the pipeline route

Flight to evacuate Canadians from cruise ship ‘expected’ to depart Japan on Thursday

Canadians seeking to return to home by commercial means will be subject to the Quarantine Act

Most Read