Work on the Trans Mountain pipeline expansion project is moving forward following government approval.
Kinder Morgan has been moving forward with regulatory, commercial and construction planning aspects ahead of construction starting in the autumn of 2017.
Following federal approval Tran Mountain delivered a final cost estimate and revised tolls to its shippers. Since receiving this, some existing and prospective shippers have picked up capacity from other shippers. The net result of that process is the turn back of only 22,000 barrels per day or 3% of the previously committed barrels. These barrels will be made available, on the same terms as existing commitments, to the market in an open season that will begin on March 9.
This final cost estimate and increased tolls are reflected in the project cost of $7.4 billion CAD. The company says the higher costs are as a result of implementing public feedback such as thicker pipe wall, additional drilled crossing in environmentally sensitive areas and the Burnaby Mountain tunnel.
Ian Anderson, president of Kinder Morgan Canada, says: ‘It’s been a lengthy and rigorous process and in spite of the many changes in the markets over the five years since our customers signed on, we knew commercial support for this project remained strong.’
Next steps include arranging acceptable financing and a final investment decision by Kinder Morgan. The project is expecting an in-service date of late 2019.