By Nia Williams
Steel pipe to be used in the oil pipeline construction of the Canadian government’s Trans Mountain Expansion Project lies at a stockpile site in Kamloops, British Columbia, Canada June 18, 2019. REUTERS/Dennis Owen
CALGARY, Alberta, Feb 18 (Reuters) - The cost of the Canadian government-owned Trans Mountain pipeline expansion has increased by 70% to C$21.4 billion ($16.79 billion) due to the impact of COVID-19 and extreme weather in British Columbia, Trans Mountain Corp said on Friday.
The company said it expects to finish the expansion in the third quarter of 2023, nine months later than previously scheduled. The previous cost estimate, made in February 2020, was C$12.6 billion.
Once completed, the Trans Mountain Expansion (TMX) will nearly triple the capacity of an existing oil pipeline running from Alberta to the Pacific Coast to 890,000 barrels per day.
But since its conception the project has been beset by regulatory delays and fierce opposition from indigenous peoples and environmentalists. In 2018 the Canadian government bought it to help ensure it gets finished.
"I want to assure Canadians that there will be no additional public money invested in Trans Mountain Corp," Canadian Finance Minister Chrystia Freeland said following the company's announcement.
Freeland said Trans Mountain Corp will instead secure the necessary funding with third-party financing, with public debt markets or financial institutions.
The government has engaged BMO Capital Markets and TD Securities to provide financial advice.
"Their analyses confirm that public financing for the project is a feasible option that can be implemented swiftly. They have also confirmed that the project remains commercially viable," Freeland added.
Freeland reiterated that the Canadian government did not plan to be the long-term owner of the pipeline, and would launch a sale process in due course.
Trans Mountain said Chief Executive Ian Anderson will retire from the company and its board, effective April 1.
The company blamed the delays and increased costs on the COVID-19 pandemic and devastating flooding in British Columbia in November that washed out roads across the south of the province and temporarily shut down the existing pipeline.
"The progress we have made over the past two years is remarkable when you consider the unforeseen challenges we have faced including the global pandemic, wildfires and flooding," Anderson said in a statement.
350.ORG
This morning we received some huge news.
First, the government-owned Trans Mountain corporation issued a press release announcing that the cost of the project had nearly doubled from $12.6 billion to $21.4 billion.1 Within minutes, the federal government announced that it would cease any further funding to the publicly owned Trans Mountain pipeline project.2
This is a huge moment and it’s all thanks to you! You were part of a mass-movement of people that challenged this climate-wrecking project from Day 1.
Now, this is our chance to finally put an end to Trans Mountain once and for all. Send a message to Trudeau right now and tell him to cancel this pipeline once and for all.
Trans Mountain never made any sense to build during a climate crisis. Now, after a year where the pipeline was delayed by climate-fueled fires, heat, floods and landslides, the government is finally suspending public funding to this project.
The opportunity to cancel this climate-wrecking pipeline has never been clearer.
Since it was first proposed, the Trans Mountain pipeline has been opposed by a massive, national, Indigenous-led movement that has fought the project on the streets, in the courts, and on the frontlines. Ever since the Trudeau government stepped into purchase the project from Texas oil giant Kinder Morgan, people like you have spoken up to demand transparency around the true cost of Trans Mountain and immediate action to defund the project.
Without our pressure, today’s massive win would not have been possible: federal funding to Trans Mountain has been suspended. Let that sink in.
This victory has shown us what we can accomplish when we act together but we can’t stop now. We need immediate action in support of a just transition. Will you take action to demand that the Trudeau government deliver the Just Transition act they have promised us for years?
No comments:
Post a Comment