The costs associated with the expansion of the Trans Mountain pipeline in western Canada have grown 44% to an estimated $30.9 billion from $21.4 billion previously.
The Trans Mountain Corporation, which is overseeing the project, issued the revised figures and blamed the increased costs on inflation, supply chain issues, and flooding in British Columbia.
The project aims to triple the capacity of a crude oil pipeline that runs between Alberta and British Columbia seaports so that it can deliver an estimated 890,000 barrels of oil per day.
The 980-kilometre pipeline expansion is now about 80% complete, the corporation said.
However, the Trans Mountain Corporation has pushed the expected in-service date of the expanded pipeline to the first quarter of 2024 due to the aforementioned issues, as well as ongoing difficulty with terrain and water disposal.
In 2022, the pipeline expansion was estimated to cost a total of $21.4 billion. The total cost has now more than doubled to $30.9 billion from an original estimate of $12.6 billion.
The federal government in Ottawa has said it plans to sell the Trans Mountain pipeline to a private company. However, the Parliamentary Budget Officer in Ottawa has warned that the government is likely to lose money on any sale.
