Better late than never.The finish line is finally in sight for the overwrought and overbought Trans Mountain pipeline expansion to the West Coast after regulators okayed completion of the final segment of the line.The Canadian Energy Regulator (CER) late Friday approved Trans Mountain’s request to deviate a 2.3 kilometre section between Chilliwack and Hope, with conditions, following an oral hearing in Calgary on Friday.Full reasons are to follow, but the ruling was noteworthy for its speed and timeliness.“The Commission has examined the Variance and all subsequent submissions related to the Variance and finds that granting the Variance is in the public interest,” it wrote. “The Commission will issue its reasons for this decision in due course.”.It reverses a previous rejection in December, after Trans Mountain applied to reduce the pipe diameter along the stretch parallel to the Fraser River to 30 inches from 36 inches and use an open trench rather than tunnel through hard rock.Trans Mountain argued the rejection would have cost the company — taxpayers — more than $50 million a day and potentially delay the project an additional two years. It already is more than $20 billion over budget and five years behind schedule, with the final price tag pushing $30.9 billion.That’s almost five times the initial $7 billion estimate when the Liberal government bought it for $4.5 billion in 2018.In its ruling, the CER said it was “satisfied” that Trans Mountain had consulted local native groups. It also noted the deviation had received letters of support from the Alberta government in addition to Calgary-based shippers Canadian Natural Resources and Cenovus Energy.Two subsequent petitions from environmental advocates at the University of British Columbia were rejected out of hand..It means Trans Mountain can finally complete the last remaining section of pipe and finally complete the missing link on a project that is now 98% complete. It also means it can begin filling the line with oil starting in late March before beginning full scale exports.Analysts have speculated that will reduce the differentials — or discounts — applied to Canadian oil vis-vis world prices as much as 25% which will result in higher prices for producers and higher royalty payments to the Alberta government.In a statement of its own, Trans Mountain said it was grateful for the speedy decision.“Trans Mountain will now proceed in compliance with the order approving the variance. Trans Mountain appreciates the timely response from the CER,” it said.
Better late than never.The finish line is finally in sight for the overwrought and overbought Trans Mountain pipeline expansion to the West Coast after regulators okayed completion of the final segment of the line.The Canadian Energy Regulator (CER) late Friday approved Trans Mountain’s request to deviate a 2.3 kilometre section between Chilliwack and Hope, with conditions, following an oral hearing in Calgary on Friday.Full reasons are to follow, but the ruling was noteworthy for its speed and timeliness.“The Commission has examined the Variance and all subsequent submissions related to the Variance and finds that granting the Variance is in the public interest,” it wrote. “The Commission will issue its reasons for this decision in due course.”.It reverses a previous rejection in December, after Trans Mountain applied to reduce the pipe diameter along the stretch parallel to the Fraser River to 30 inches from 36 inches and use an open trench rather than tunnel through hard rock.Trans Mountain argued the rejection would have cost the company — taxpayers — more than $50 million a day and potentially delay the project an additional two years. It already is more than $20 billion over budget and five years behind schedule, with the final price tag pushing $30.9 billion.That’s almost five times the initial $7 billion estimate when the Liberal government bought it for $4.5 billion in 2018.In its ruling, the CER said it was “satisfied” that Trans Mountain had consulted local native groups. It also noted the deviation had received letters of support from the Alberta government in addition to Calgary-based shippers Canadian Natural Resources and Cenovus Energy.Two subsequent petitions from environmental advocates at the University of British Columbia were rejected out of hand..It means Trans Mountain can finally complete the last remaining section of pipe and finally complete the missing link on a project that is now 98% complete. It also means it can begin filling the line with oil starting in late March before beginning full scale exports.Analysts have speculated that will reduce the differentials — or discounts — applied to Canadian oil vis-vis world prices as much as 25% which will result in higher prices for producers and higher royalty payments to the Alberta government.In a statement of its own, Trans Mountain said it was grateful for the speedy decision.“Trans Mountain will now proceed in compliance with the order approving the variance. Trans Mountain appreciates the timely response from the CER,” it said.
