Company News

Trans Mountain pipeline cost rises to C$12.6 bln: CBC

WINNIPEG, Manitoba, Feb 7 (Reuters) - The Canadian government-owned Trans Mountain oil pipeline is expected to cost C$12.6 billion ($9.47 billion) to expand, a sharp increase from the previous estimate of C$7.4 billion, the Canadian Broadcasting Corp (CBC) reported on Friday.

Trans Mountain Chief Executive Ian Anderson was scheduled to speak at a news conference later in the day and will announce the increase then, CBC reported. It said the project’s completion is now expected in December 2022, which is later than the most recent guidance of completion by the third quarter of that year.

Reuters could not immediately verify the report. A Trans Mountain spokesperson would not comment on it.

The project will twin a 67-year-old pipeline and nearly triple capacity to 890,000 barrels per day moving from Alberta to a Pacific coast port near Vancouver. It is one of several pipeline projects that have been delayed due to opposition from environmental activists and indigenous groups, forcing the Alberta provincial government to order production curtailments.

Canada’s Federal Court of Appeal on Tuesday dismissed a challenge to government approval of the Trans Mountain expansion, clearing some uncertainty from the project. ($1 = 1.3301 Canadian dollars) (Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by Steve Orlofsky)