(Calgary) The projected cost of the Trans Mountain pipeline expansion has jumped 70% to $21.4 billion, as the project is delayed.
Posted at 2:04 p.m.
The crown corporation behind the project says the total cost has soared from the previous forecast of £12.6bn.
Trans Mountain attributed the rise in cost to the COVID-19 pandemic and the impact of the November 2021 floods in British Columbia, among others.
The company further clarified that the project would not be completed until the third quarter of 2023. It was originally expected to be completed this year.
The existing Trans Mountain pipeline transports 300,000 barrels of oil per day. It is the only pipeline system to ship oil from Alberta to the West Coast. It was bought by the federal government in 2018, for the sum of 4.5 billion. The expansion of the pipeline should allow it to increase its daily capacity to 890,000 barrels.
Trans Mountain also announced the retirement of its President and Chief Executive Officer, Ian Anderson, on 1er April.