Ottawa Approves $7.7 Billion Loan Guarantee for Trans Mountain Pipeline Expansion
(Reuters) — Canada's government-owned Trans Mountain Corp. has secured C$10 billion ($7.7 billion) in financing to help cover the expansion of a pipeline that will bring more crude from landlocked Alberta to the Pacific coast, according to a statement on Wednesday.
Prime Minister Justin Trudeau's Liberal government bought the Trans Mountain pipeline in 2018 to ensure the long-delayed expansion project went ahead. In February, the government said costs had surged to C$21.4 billion ($16.5 billion).
The third-party financing was secured with a group of Canadian financial institutions, the Finance Ministry statement said, adding that "the cost estimate (for construction) and 2023 completion date" for the pipeline would not change.
The federal government is providing a loan guarantee on behalf of Trans Mountain Corp. and said it has not spent any money to put that guarantee in place.
The move drew criticism from some environmental groups.
"This will put even more taxpayer dollars on the line for a federally owned project that has clearly become a financial boondoggle," said Julia Levin, National Climate Program Manager at Environmental Defence.
($1 = 1.2996 Canadian dollars)
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Phillips 66 to Shut LA Oil Refinery, Ending Major Gasoline Output Amid Supply Concerns
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Polish Pipeline Operator Offers Firm Capacity to Transport Gas to Ukraine in 2025
Comments