Trans Mountain Expansion to Cost More than Expected
Kinder Morgan today announced that the estimated cost of the Trans Mountain Expansion Project has increased to $7.4 billion CAD. According to the company, the higher project cost can be attributed to a number of factors, including costs associated with the NEB’s 157 Conditions and project changes as a result of public feedback, such as thicker pipe wall, additional drilled crossings in environmentally sensitive areas, and the Burnaby Mountain tunnel.
“It’s been a lengthy and rigorous process and in spite of the many changes in the markets over the five years since our customers signed on, we knew commercial support for this project remained strong,” said Ian Anderson, president of Kinder Morgan Canada. “Over the past five years, we’ve listened to Canadians and made changes to the project that have increased costs, but made our project better. We’re proud of the project we’ve developed and how it reflects the values and priorities of our communities and we’re pleased our customers have re-confirmed their support and interest in its purpose of delivering much needed West Coast access for their products.”
Construction is set to begin in fall 2017, with an expected in-service date of late 2019.
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