Canada-owned Trans Mountain Oil Pipeline Not Profitable: Budget Officer

Canada's parliamentary budget officer recently reported that the government-owned Trans Mountain pipeline has a net present value of negative C$600 million, making it no longer profitable.

Rod Nickel and Ismail Shakil, Reuters

The Canadian government-owned Trans Mountain oil pipeline is no longer profitable after cost over-runs and delays to its expansion project, the country's parliamentary budget officer (PBO) said on June 22.

A report from PBO Yves Giroux said the pipeline has a net present value of negative C$600 million (negative $463.03 million USD), based on the difference between Trans Mountain's cash flows and its C$4.4 billion purchase price.

The report from the PBO, which provides independent advice to Parliament, is a blow to Prime Minister Justin Trudeau, whose government bought the pipeline in 2018 to ensure that the expansion proceeded despite protests. Expansion of other pipelines has since smoothed the flow of crude, one of Canada's most valuable exports.

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