The cost to expand the Trans Mountain oil pipeline has soared 70% to nearly $17-billion, potentially challenging the viability of the line from Canada’s oil heartland to the Pacific Coast.
The new cost estimate of C$21.4-billion ($16.8-billion) was released Friday by Trans Mountain, which was bought by the Canadian government in 2018 to save the project that will expand capacity from about 300 000 bbl/d to more than 800 000 bbl/d.
The company said Covid-19 delays, flooding in British Columbia and changes to the project plans all contributed to the increase from the previous estimate of C$12.6-billion.
“Notwithstanding the cost increase and revised completion schedule, the business case supporting the project remains sound. Canada will benefit from the economic and tax contributions made by the project once it is in operation,” the company said in a statement on its website.