Trans Mountain Pipeline Expects Q2 Launch, 10% Cost Increase
(Reuters) — Trans Mountain Corp., the Canadian government-owned oil pipeline company, continues to target a second-quarter in-service date for its expansion and expects the project's cost to rise 10%, according to a filing.
Trans Mountain said in the filing on Monday to the Canada Energy Regulator, however, that commencement for firm service contracts with shippers is May 1.
That represents a one-month delay from its prior commencement date, RBC Capital Markets analysts said in a note.
The expansion will nearly triple the flow of crude from Alberta to Canada's Pacific Coast to 890,000 barrels per day but has been plagued by years of delays and cost overruns.
The new commencement date is in line with Trans Mountain's most-recent estimate of starting service in the second quarter despite ongoing construction problems.
Cost estimates are now 10% higher than the C$30.9-billion estimate that Trans Mountain provided in May, but the company will provide another update to factor in actual costs after it is mechanically complete, the company said.
Greater pipeline capacity will enable more Canadian crude to flow to refineries on the U.S. West Coast and in Asia.
Canadian oil and gas producers will slightly increase capital spending this year in part because of the pipeline expansion, the Canadian Association of Petroleum Producers said on Tuesday.
Related News
Related News
- 1,000-Mile Pipeline Exit Plan by Hope Gas Alarms West Virginia Producers
- Valero Plans to Shut California Refinery, Takes $1.1 Billion Hit
- Three Killed, Two Injured in Accident at LNG Construction Site in Texas
- Greenpeace Ordered to Pay $667 Million to Energy Transfer Over Dakota Access Pipeline Protests
- Boardwalk’s Texas Gas Launches Open Season for 2 Bcf/d Marcellus-to-Louisiana Pipeline Expansion
- New Alternatives for Noise Reduction in Gas Pipelines
- Construction Begins on Ghana's $12 Billion Petroleum Hub, But Not Without Doubts
- Missouri Loses Control Over 1.5 Million-Mile Gas Pipeline Network as Feds Step In
- Gazprom’s Grandeur Fades as Europe Moves Away from Russian Gas
- Greenpeace Ordered to Pay $667 Million to Energy Transfer Over Dakota Access Pipeline Protests
Comments