Day late, $30.9 billion short.The on-again, off-again, on-again taxpayer-funded Trans Mountain pipeline expansion to the West Coast appears to be off-again — yet again — even as the Canadian Energy Regulator (CER) on Wednesday released the latest reasons for allowing its latest ‘variance’ request for a 2.3 kilometre section of line near Chilliwack. After rejecting it outright on December 20, 2023.Not that it matters much, because the company this week reported unspecified “technical construction challenges” could further delay the already oft-delayed conduit for Alberta’s heavy oil by an unspecified amount..“Trans Mountain is fully focused on the completion of the pipeline and will not be providing interviews at this time as it works towards the anticipated in-service date in the second quarter of 2024.”.The pipeline expansion, which is already 98% complete, was to add an additional 600,000 barrels per day (bpd) of export capacity — presumably by the end of the first quarter of this year. Already, major oil sands producers such as Canada Natural Resources, Suncor and Cenovus have been ramping up production in anticipation of a new outlet that ought to reduce gaping price differentials and diversify markets away from a single customer — the US.That was before the company on Monday said it would need “additional time to determine the safest and most prudent actions for minimizing further delay.”That has now apparently been pushed back at least one quarter.“Trans Mountain is fully focused on the completion of the pipeline and will not be providing interviews at this time as it works towards the anticipated in-service date in the second quarter of 2024.”.In its own statement, the CER said it has inspection officers and so-called ‘indigenous monitors’ onsite as part of unspecified “standard compliance verification activities.”“No safety or environmental concerns have been noted and we will continue to monitor the situation,” it said.The good news is that “the Commission found that approving the December application with four conditions is in the public interest.” The decision allows Trans Mountain to install a 76-cm diameter pipe instead of the previously planned 91-cm diameter pipe for the 2.3-kilometre section along the Fraser River.In other words, it should be good to go assuming the latest difficulties don’t prove to be insurmountable. There’s no indication they are.“The Commission is satisfied that with this approach, Trans Mountain can ensure the material quality for the variance will be equivalent to the rest of the (project).”
Day late, $30.9 billion short.The on-again, off-again, on-again taxpayer-funded Trans Mountain pipeline expansion to the West Coast appears to be off-again — yet again — even as the Canadian Energy Regulator (CER) on Wednesday released the latest reasons for allowing its latest ‘variance’ request for a 2.3 kilometre section of line near Chilliwack. After rejecting it outright on December 20, 2023.Not that it matters much, because the company this week reported unspecified “technical construction challenges” could further delay the already oft-delayed conduit for Alberta’s heavy oil by an unspecified amount..“Trans Mountain is fully focused on the completion of the pipeline and will not be providing interviews at this time as it works towards the anticipated in-service date in the second quarter of 2024.”.The pipeline expansion, which is already 98% complete, was to add an additional 600,000 barrels per day (bpd) of export capacity — presumably by the end of the first quarter of this year. Already, major oil sands producers such as Canada Natural Resources, Suncor and Cenovus have been ramping up production in anticipation of a new outlet that ought to reduce gaping price differentials and diversify markets away from a single customer — the US.That was before the company on Monday said it would need “additional time to determine the safest and most prudent actions for minimizing further delay.”That has now apparently been pushed back at least one quarter.“Trans Mountain is fully focused on the completion of the pipeline and will not be providing interviews at this time as it works towards the anticipated in-service date in the second quarter of 2024.”.In its own statement, the CER said it has inspection officers and so-called ‘indigenous monitors’ onsite as part of unspecified “standard compliance verification activities.”“No safety or environmental concerns have been noted and we will continue to monitor the situation,” it said.The good news is that “the Commission found that approving the December application with four conditions is in the public interest.” The decision allows Trans Mountain to install a 76-cm diameter pipe instead of the previously planned 91-cm diameter pipe for the 2.3-kilometre section along the Fraser River.In other words, it should be good to go assuming the latest difficulties don’t prove to be insurmountable. There’s no indication they are.“The Commission is satisfied that with this approach, Trans Mountain can ensure the material quality for the variance will be equivalent to the rest of the (project).”
