The Trans Mountain expansion project would triple the capacity of the existing pipeline between Edmonton and a shipping terminal in Burnaby, B.C. (Canadian Press file images)

Trans Mountain pipeline expansion cost jumps 70% to $12.6 billion

The estimate of $7.4 billion was made in 2017 by the previous owner

The cost to build the Trans Mountain pipeline expansion has jumped by 70 per cent to $12.6 billion from a three-year-old estimate of $7.4 billion.

President and CEO Ian Anderson says the company owned by the federal government has spent $2.5 billion to date, including the impact of delays and additional regulatory processes, leaving an additional $8.4 billion needed to complete the project, plus $1.7 billion of financial carrying costs.

He says the project is now expected to be in service by December 2022.

The estimate of $7.4 billion was made in 2017 by the previous owner, Houston-based Kinder Morgan, Inc., which sold the expansion project and the existing pipeline to the federal government in 2018 for $4.5 billion.

Opponents have attacked the greenhouse gas emission and oil spill risks of the pipeline project but they’ve also charged it will be a money-loser with unproved markets in Asia that will fail financially and leave the public holding the bag.

ALSO READ: Opponents in B.C. to ramp up protests against Trans Mountain pipeline

Anderson says the company is recommending that Ottawa, as owner and lender, set aside a further $600 million reserve for cost impacts beyond the control of Trans Mountain.

Opponents of the pipeline expansion have vowed to do whatever it takes to stop the project despite losing a legal challenge before the Federal Court of Appeal earlier this week.

The four First Nations who lost the court challenge on Tuesday have 60 days to seek leave to appeal to the Supreme Court of Canada.

The expansion project would triple the capacity of the existing pipeline between Edmonton and a shipping terminal in Burnaby, B.C.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Trans Mountain pipeline

Just Posted

Vancouver Island’s L’Arche community reeling over findings of inquiry into founder

Participants stunned over findings of founder’s sexual misconduct

Battling bullying covers a lot of ground, says Island Safe Schools manager

Social media responsible for a lot of the problems being seen in schools, Sooke official says

Wounded Warrior Run gets personal for participant

Port Alberni RCMP officer says mental health is a priority

CatVideoFest makes its way back to Victoria

A curation of favourite cat videos will be featured on the big screen, all to support cats

VIDEO: Feds warned agricultural sector near ‘tipping point’ due to blockades

Canadian Federation of Agriculture points to lack of propane and feed due to Coastal GasLink dispute

Demonstrators plan to shut down Pat Bay Highway Wednesday afternoon

Protest is in support of Wet’suwet’en First Nation

B.C. terminates contract with hospice society refusing assisted death

Delta Hospice Society loses hospital service fund of $1.5 million

Seven arrested at blocked rail line in northern B.C., police say

But a Gitxsan hereditary chief says 14 were arrested, as fight over natural gas pipeline continues

Hospital parking fees needed, but changes to payment system possible, health minister says

B.C. health minister Adrian Dix says hospital parking doesn’t need to be so stressful

Bachman/Cummings show part of a rockin’ summer in Victoria

Fans of classic rock can experience reunion concert July 6 at the Save-On-Foods Memorial Centre

Vancouver Island filmmaker brings legendary BC outlaw to the big screen

Damien Gillis’ Shadow Trap based on the life of Simon Gunanoot screened in advance of Crave broadcast

Protecting privacy key to stopping spread of COVID-19, B.C. health officials say

The number of coronavirus cases in B.C. remains at seven

Most Read