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

Kelowna RCMP make arrest in fatal stabbing of 16-year-old Elijah Beauregard

An 18-year-old woman is in police custody facing a manslughter charge.

West Kelowna director nominated for Juno Award

Johnny Jansen directed B.C. band Said the Whale’s ‘Record Shop’ video

West Kelowna Warriors edge Vernon Vipers 6-4

The teams meet again on Saturday, Feb. 22 at 6 p.m. for the final game of regular season

Prolific offenders from Alberta lead RCMP on chase from Kelowna to Abbotsford

Men first reported in Chilliwack ending with allegedly stolen vehicle in an Abbotsford pond

Fiery collision involving truck closes Highway 1 at Three Valley Gap

Drivers should expect major delays and congestion; estimated time of re-opening is 2 p.m.

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

HIGHLIGHTS: Day one and two at the 2020 BC Winter Games

Athletes had sunny – but cold – weather to work with in Fort St. John

BC Senior Curling titles to be decided in Vernon

Wes Craig, Penny Shantz looking for fifth championships; Steve Wright, Donna Mychaluk into finals

B.C. money laundering inquiry to begin amid hopes for answers, accountability

Eby argued that most B.C. residents already know the previous government, at best, turned a blind eye

Blockades remain in place as Wet’suwet’en hereditary chiefs returning to B.C.

Hereditary Chief Woos said they are ready to engage in nation-to-nation talks with the B.C.

Dale family was prominent in Summerland’s past

Ruth Dale taught for many years

Tyler Toffoli scores twice, Canucks crush Bruins 9-3

Stecher, Miller each add three points for Vancouver

Zamboni driver, 42, earns NHL win over Maple Leafs

Emergency goalie called into action for Carolina Hurricanes

Landlord ordered to pay $11K after harassing B.C. mom to move days after giving birth

Germaine Valdez was pressured to move just a few days after giving birth by C-section to her child

Most Read