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By David Opinko/LethbridgeNewsNOW

Cost of Trans Mountain expansion rises 70 per cent to $21.4B

Feb 18, 2022 | 1:52 PM

CALGARY – The projected cost of the Trans Mountain pipeline expansion has soared while its completion is delayed.

A full review of the project schedule and cost estimates is now complete.

The pipeline expansion is now projected to cost $21.4 billion, an increase from the previous estimate of $12.6 billion.

Ian Anderson, president and CEO of Trans Mountain Corporation, says there are a wide array of reasons for the higher price tag including project enhancements, changes, delays, financing, impacts from the COVID-19 pandemic, and preliminary impacts of the November 2021 floods and mudslides in B.C.

“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. At every step of the way, we have found solutions and responded.”

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“As a result, the Project is advancing with significantly improved safety and environmental management, and with a deep commitment to ensure this Project is being built the right way,” Anderson adds.

A further breakdown of the increased costs is provided below:

• Project enhancements – $2.3 billion
• Schedule pressures – $2.6 billion
• Generational events such as COVID-19 and extreme weather in B.C. – $1.4 billion
• Safety and security requirements – $500 million
• Financing costs – $1.7 billion

Once finished, the expanded pipeline will deliver nearly 300,000 barrels of petroleum products each day from Alberta to B.C. and Washington State. It will involve the installation of approximately 980 kilometers of new pipeline as well as a variety of other pieces of infrastructure.

Crews are now working to have the pipeline expansion completed by the third quarter of 2023.