Conditions Push Up Price of Oil-Line Expansion in West Canada
Costs for Kinder Morgan Inc.’s 715-mile-long Trans Mountain oil-pipeline expansion in Alberta and British Columbia have risen to $5.48 billion from $5 billion since 2014, when the project was announced, company officials said on March 9. They attribute the increase to the 157 conditions imposed by Canada’s National Energy Board; a thicker pipe wall, demanded by public feedback, and added drilled crossings in environmentally sensitive areas along the route. Local resistance to a twin of the existing line, which runs from Edmonton to Burnaby, B.C., remains fierce; the project also still must close financing and make a final investment decision. But the company expects to start construction this fall.