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

Stettler County awaits Summer Village responses on possible amendment to Buffalo Lake development plan

Amendment could allow for more lots at the controversial Buffalo Lake RV Resort

Atom Stars play it even in home tournament

Bashaw doesn’t make the final after finishing at 2-2

Flush truck partnership updated

Agreement between Bashaw and two other municipalities renewed

Bashaw Rebels basketball performs well in tournaments

Senior girls win in Alix, boys strong at home despite losses

Fashion Fridays: The 8 best quality online stores! Shop the ultimate sales

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Governor general says multiple solutions needed for ‘complicated’ overdose issue

Julie Payette met at a fire hall with firefighters and police officers as well as politicians and health experts

‘Nothing surprises us anymore:’ U.S. border officials find brain in package

U.S. Customs and Border Protection agents found the brain packed in a glass mason jar in a Canada Post shipment

Eyes on police after Trudeau orders blockades torn down, injunctions enforced

The RCMP in B.C. have sent a letter to the traditional leaders of the Wet’suwet’en Nation

Alberta doctors getting ready for court fight against new pay, benefits deal

United Conservative government says Alberta doctors make more than physicians in other provinces

VIDEO: Outpouring of worldwide support for bullied Australian boy

Australian actor Hugh Jackman said ‘you are stronger than you know, mate’

Trudeau: Time for blockades to end and Indigenous leaders to work with government

Prime minister says situation in Coastal GasLink pipeline dispute is ‘unacceptable and untenable’

Canadians released from coronavirus-ridden cruise ship in Japan fly home

Those who were cleared to travel are to be screened again at Canadian Forces Base Trenton

Study says flu vaccine protected most people during unusual influenza season

Test-negative method was pioneered by the BC Centre for Disease Control in 2004

Most Read