Pipe and terminal construction work is well underway for the Trans Mountain expansion project, with construction due to be underway across the entire line by the end of 2020.
Work is underway with pipe in the ground and terminal construction in Alberta, and significant work is ongoing at the Burnaby and Westridge marine terminals in British Columbia.
The Trans Mountain board of directors recently approved a project cost estimate of $12.6 billion to bring it into service by the end of 2022. To date, the company has spent $2.5 billion in respect to the project, which includes the impact of delays and the resulting additional regulatory process. It is anticipated that an additional $8.4 billion will be spent to complete the project, plus $1.7 billion of financial carrying costs.
The company says that this estimated cost of the expansion reflects today’s realities of enhanced environmental protections, security, quality assurance and indigenous including, and is based on reasonable assumptions.
The company’s projected earnings before interest, taxes, depreciation and amortisation (EBITDA) are expected to be at least $1.5 billion in the first year of the Project’s operation and expected to grow annually. These projections are underpinned by long-term contractual commitments covering 80% of the system’s 890,000 barrels a day of capacity.
Ian Anderson, president and CEO of Trans Mountain, says: ‘Today’s Trans Mountain expansion project has seen significant changes, enhancements and improvements since it was originally envisioned in 2009, and first introduced to the public in 2012. The project reflects the input and feedback from thousands of Canadians and incorporates the very best safety and environmental protections.
‘From the installation of state-of-the-art leak detection and monitoring technology, route adjustments to avoid sensitive areas, tunnelling versus trenched crossings, to installing more valves and ground water monitoring stations, Canadian’s will be proud to know that Trans Mountain has established the very highest benchmark for the development and construction of a major energy infrastructure project.’