NANAIMO, British Columbia—Canada’s resource minister said on Aug. 22 that construction on the Trans Mountain project had faced a delay, but he did not provide an update on when the expansion of the oil pipeline from Alberta to British Columbia’s coast would be complete.
The Canadian government agreed in May to buy the pipeline from Kinder Morgan Canada Ltd for $3.5 billion, in an effort to ensure its expansion went ahead. It is currently scheduled to be in service by December 2020.
“Yes, there’s a delay because of—the construction was stopped for a couple of months, but this is a project that is moving forward and will continue to move forward until it’s done,” Natural Resources Minister Amarjeet Sohi told reporters outside a Cabinet meeting in Nanaimo, British Columbia.
Kinder Morgan halted all non-essential work on the project in April, delaying the build for several months. Some preliminary work has since resumed, but actual pipeline construction is not expected to start until the spring of 2019.
It remains unclear if the expansion will be delivered on its current timeline and budget.
The Canadian government has faced criticism for taking on the massive twinning project, which will nearly triple capacity on the existing pipeline to 890,000 barrels per day.
That new capacity is desperately needed by Canadian oil producers, who face transportation bottlenecks that have translated into deep discounts on their product relative to the U.S. benchmark.
But the project is hotly opposed by environmental activists, some aboriginal groups and the province of British Columbia, who worry about the consequences of a possible oil spill.
Canada’s energy regulator gave the go-ahead last week for construction of a large portion of the expansion. Canada’s takeover of the pipeline is expected to close later this year.
Recommended Reading
Talos Ups Buybacks, Pays Down Debt Post $1.29B QuarterNorth Deal
2024-07-22 - Talos Energy said it repaid $325 million in debt since closing its $1.29 billion cash-and-stock acquisition of E&P QuarterNorth in March.
Archrock Offers $500 Million in Secure Notes for TOPS Deal
2024-08-12 - Archrock is raising debt and selling equity to pay for its $983 million acquisition of Total Operations and Productions Services.
Cibolo Energy Closes Fund Aimed at Upstream, Midstream Growth
2024-09-10 - Cibolo Energy Management LLC closed its second fund, Cibolo Energy Partners II LP, meant to boost middle market upstream and midstream companies’ growth with development capital.
Matador Offers $750 Million in Senior Notes Following Ameredev Deal
2024-09-20 - Matador Resources will offer $750 million in senior notes following the close of its $1.83 billion Ameredev II acquisition.
ONEOK Offers $7B in Notes to Fund EnLink, Medallion Midstream Deals
2024-09-11 - ONEOK intends to use the proceeds to fund its previously announced acquisition of Global Infrastructure Partners’ interest in midstream companies EnLink and Medallion.