The event is simply the most recent in a string of construction-related hurdles which have plagued the Trans Mountain growth venture
Article content material
The Canada Power Regulator has denied a request by Trans Mountain Corp. for a variance on a bit of pipeline in B.C., a growth that the corporate has mentioned may delay development of the continued growth venture and push again the pipeline’s begin date.
The regulator issued its ruling Tuesday, however — for the aim of expediency — didn’t present its causes for the choice. It mentioned it’ll present its written causes at a later date.
Commercial 2
Article content material
Article content material
Trans Mountain Corp., the Crown company that’s constructing the pipeline growth, had utilized for the variance after working into what it mentioned had been development challenges associated to onerous rock between Chilliwack and Hope, B.C.
The corporate had requested permission to make use of a unique diameter, wall thickness and coating for a 2,300-metre part of pipeline than it had initially been accepted for.
At a current oral listening to in Calgary, Trans Mountain Corp. mentioned that being denied the variance may add a further 55 to 60 days to the venture’s development schedule.
This might imply, argued chief venture execution officer Corey Goulet on the listening to, that Trans Mountain could not be capable of full the venture in time for an anticipated first-quarter 2024 begin date.
“We’d be not less than, you already know, a month after our plan, perhaps extra,” Goulet mentioned, in line with the official transcript of the listening to.
Associated Tales
Midday Information Roundup
Article content material
Commercial 3
Article content material
The event is simply the most recent in a string of construction-related hurdles which have plagued the Trans Mountain growth venture.
The pipeline is Canada’s solely oil pipeline to the west coast. Its growth will increase the pipeline’s capability to 890,000 barrels per day from 300,000 bpd at present and enhance entry to export markets for Canadian oil corporations.
However the venture’s prices have spiralled by way of the course of development from an authentic estimate of $5.4 billion to the newest estimate of $30.9 billion.
Earlier this fall, Trans Mountain Corp. additionally utilized to the regulator for permission to change the route for a 1.3-kilometre stretch of pipe within the Jacko Lake space close to Kamloops, B.C., resulting from difficulties drilling a tunnel.
The regulator granted that request, despite the fact that a B.C. First Nation opposed the route alteration.
Oil delivery corporations stress significance of well timed pipeline completion
Trans Mountain has been racing towards the clock to finish the venture on schedule to be able to stop further price overruns in addition to the roughly $200 million per 30 days in misplaced income it could incur if the pipeline doesn’t start delivery oil as early as anticipated.
Commercial 4
Article content material
Final week, a gaggle of oil shippers together with Canadian Pure Assets Ltd., Marathon Petroleum, Parkland Refining, PetroChina Canada Ltd. and Suncor Power Inc. wrote a letter to the Canada Power Regulator emphasizing the significance of a well timed completion of the pipeline growth venture.
“Nevertheless, ought to the variance result in any adversarial results or unexpected impacts affecting the shippers, it’s crucial that Trans Mountain bears all duty for rectifying these points in a well timed and affordable method and at its sole price, threat and expense,” the shippers’ letter said.
Trans Mountain testified on the listening to that utilizing a unique diameter and thickness of pipe for a 2,300-metre part of the venture wouldn’t cut back the general volumes of oil that might be transported by the expanded pipeline.
This report by The Canadian Press was first printed Dec. 5, 2023.
Article content material