Trans Mountain’s latest cost estimate climbs 10 per cent, regulatory filing shows
Posted February 27, 2024 2:29 pm.
Last Updated February 27, 2024 10:04 pm.
A new regulatory filing shows the company behind the Trans Mountain pipeline expansion now estimates the project’s costs will come in 10 per cent higher than its May 2023 estimate of $30.9 billion.
Trans Mountain Corp. provided the estimate in a filing on Monday to the Canada Energy Regulator, but said it is subject to the receipt of final costs and expenses once the pipeline project is complete.
The company said it will need approximately three months following the completion of construction before it can provide a final cost estimate.
Trans Mountain Corp. said in the filing it continues to work towards an in-service date for the pipeline expansion in the second quarter of this year, with commencement of firm service contracts slated for May 1.
RBC Capital Markets analyst Greg Pardy said in a note to clients that the new date represents a one-month delay from its prior start date.
Trans Mountain Corp. has been challenged by a number of construction-related challenges as it works to complete the expansion, which will increase the pipeline’s export capacity to the West Coast to 890,000 barrels per day from 300,000 bpd currently.
