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The event is barely the newest in a string of construction-related hurdles which have plagued the Trans Mountain growth challenge
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The Canada Power Regulator has denied a request by Trans Mountain Corp. for a variance on a bit of pipeline in B.C., a improvement that the corporate has mentioned might delay development of the continuing growth challenge and push again the pipeline’s begin date.
The regulator issued its ruling Tuesday, however — for the aim of expediency — didn’t present its causes for the choice. It mentioned it is going to present its written causes at a later date.
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Trans Mountain Corp., the Crown company that’s constructing the pipeline growth, had utilized for the variance after working into what it mentioned have been development challenges associated to arduous rock between Chilliwack and Hope, B.C.
The corporate had requested permission to make use of a unique diameter, wall thickness and coating for a 2,300-metre part of pipeline than it had initially been accredited for.
At a latest oral listening to in Calgary, Trans Mountain Corp. mentioned that being denied the variance might add an extra 55 to 60 days to the challenge’s development schedule.
This might imply, argued chief challenge execution officer Corey Goulet on the listening to, that Trans Mountain might not be capable of full the challenge in time for an anticipated first-quarter 2024 begin date.
“We’d be a minimum of, you understand, a month after our plan, possibly extra,” Goulet mentioned, in keeping with the official transcript of the listening to.
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The event is barely the newest in a string of construction-related hurdles which have plagued the Trans Mountain growth challenge.
The pipeline is Canada’s solely oil pipeline to the west coast. Its growth will enhance the pipeline’s capability to 890,000 barrels per day from 300,000 bpd at present and enhance entry to export markets for Canadian oil corporations.
However the challenge’s prices have spiralled by the course of development from an authentic estimate of $5.4 billion to the latest estimate of $30.9 billion.
Earlier this fall, Trans Mountain Corp. additionally utilized to the regulator for permission to change the route for a 1.3-kilometre stretch of pipe within the Jacko Lake space close to Kamloops, B.C., attributable to difficulties drilling a tunnel.
The regulator granted that request, regardless that a B.C. First Nation opposed the route alteration.
Oil delivery corporations stress significance of well timed pipeline completion
Trans Mountain has been racing in opposition to the clock to finish the challenge on schedule with the intention to stop further price overruns in addition to the roughly $200 million monthly in misplaced income it will incur if the pipeline doesn’t start delivery oil as early as anticipated.
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Final week, a gaggle of oil shippers together with Canadian Pure Sources Ltd., Marathon Petroleum, Parkland Refining, PetroChina Canada Ltd. and Suncor Power Inc. wrote a letter to the Canada Power Regulator emphasizing the significance of a well timed completion of the pipeline growth challenge.
“Nevertheless, ought to the variance result in any adversarial results or unexpected impacts affecting the shippers, it’s crucial that Trans Mountain bears all accountability for rectifying these points in a well timed and cheap method and at its sole price, danger and expense,” the shippers’ letter acknowledged.
Trans Mountain testified on the listening to that utilizing a unique diameter and thickness of pipe for a 2,300-metre part of the challenge wouldn’t scale back the general volumes of oil that may very well be transported by the expanded pipeline.
This report by The Canadian Press was first printed Dec. 5, 2023.
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