Cost to Twin Trans Mountain Pipeline Now $1.9B Higher, Kinder Morgan Says
Steel pipe to be used in the pipeline construction of the Trans Mountain expansion project at a stockpile site in Kamloops, B.C. (Dennis Owen/Reuters)
Pipeline to West Coast now projected to be done by December 2021
The Canadian Press,
Kinder Morgan Canada documents say expanding the Trans Mountain pipeline will cost the federal government an additional $1.9 billion beyond the company’s original construction estimate, and will take another year to complete.
The figure is included in documents Kinder Morgan Canada filed Tuesday with the United States Security and Exchange Commission related to the company’s plan to sell the pipeline to the Canadian government for $4.5 billion.
Kinder Morgan has long said it would cost $7.4 billion to build a second pipeline parallel to the first in order to triple its capacity, but the financial documents now say the company expects a $9.3 billion price tag.
The documents also suggest construction won’t be complete until December 2021 — a full year beyond its previous projection of December 2020.
Finance Minister Bill Morneau has been reluctant to talk about how much more it will cost to build the pipeline while the deal is being finalized.
The closing date for the deal is now being pushed back well into the fall.
The documents also say shareholders will meet Aug. 30 in Calgary to vote on the proposed sale.
