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

Dynamiters’ Palmer named League MVP; Stuart Coach of Year

Kimberley Dynamiters award winning season continued Friday, as the Kootenay International Junior… Continue reading

KIJHL hires Jeff Dubois as new commissioner

Emanuel Sequeira Communications Manager, KIJHL Jeff Dubois has been hired as the… Continue reading

Sexual assault stories from treeplanting camps ‘shocking but not surprising’

Contractors’ association is working with trainers to create respectful culture

Kimberley Alpine Resorts hosts Jeep Junior Free Ski event

Young skiers had an opportunity to show off their skills at the… Continue reading

Registration open now for North Star Ski-Mo Race

It’s time once more for the annual North Star Ski-Mo Race, where… Continue reading

WATCH: The week in review: Feb. 28

WATCH: Interior Health issues drug alert in Cranbrook Interior Health is warning… Continue reading

Toddler killed in Squamish grocery store parking lot

Child’s mother taken to hospital but her condition is not known

Two law enforcement trucks ‘deliberately’ set on fire in northern B.C., RCMP say

Police say they have video evidence of a person in the area of the truck fires

B.C. mother, daughter return home after coronavirus quarantine in Asia

Jensine Morabito and her daughter were on Holland America’s Westerdam but did not catch the virus

Leap Year means we get an extra day in February, so how are you spending it?

People online have a number of suggestions and plans on how they will be spending Saturday

Greta sticker that drew outrage in Alberta not child pornography: RCMP

X-Site Energy Services has denied having anything to do with the stickers

Bald eagle hit by train in northern B.C. has a chance of survival

The raptor has been taken to OWL in the Lower Mainland for recovery

Piano Recital on Sunday at East Kootenay Performing Arts Festival

The East Kootenay Performing Arts Festival (EKPAF) presents a special treat: a… Continue reading

Cheslatta Carrier Nation and Rio Tinto sign a historic agreement

Co-operation crucial to stem dropping Nechako Reservoir level

Most Read