CBJ — Kinder Morgan Canada says expanding the Trans Mountain pipeline could cost the federal government far beyond the company’s original construction estimate and take 12 months longer to finish.
The new figures are included in documents the company filed with the United States Security and Exchange Commission related to its plan to sell the pipeline to the Canadian government for $4.5 billion after no other bidder came forward to take on the project.
The sale price does not include the final tally in terms of how much Canadians will ultimately pay to finish twinning the pipeline between Alberta and British Columbia. Finance Minister Bill Morneau has not indicated how much Ottawa expects to spend on construction because of concerns that it could impact on negotiations with construction contractors, which are now underway.
The $7.4 billion construction cost Kinder Morgan reported in February 2017 hasn’t been updated since the project hit political snags, construction delays and opposition in B.C.
Shared from The Canadian Business Journal
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