$34B Trans Mountain Pipeline Expansion Project Is Good To Go, After 13 Long Years Of Delay!

34B-Trans-Mountain-Pipeline-Expansion-Project-Is-Good-To-Go,-After-13-Long-Years-Of-Delay!

The most awaited construction of the Canadian energy sector has officially been finalized. The Trans Mountain pipeline expansion project is all set to boost Alberta’s oil market to whole new heights.

According to a statement forwarded by Crown corporation Trans Mountain Corp, confirmed on May 1st, the expanded pipeline is all good to go and is currently operating at 70% capacity, with an ongoing infusion of crude oil to the new system.

The Trans Mountain pipeline expansion project is all prepared to crank up Canadian oil exports to Pacific and Asian markets.

The pipeline is capable of carrying 300k to 890k barrels of Canadian crude oil daily. Offering a substantial cost saving on taxes and royalties, the project is a remarkable boon for Canadian citizens and oil producers

The company stated that the last piece of construction was placed on April 11 in Fraser Valley, the south of British Colombia province.

Trans Mountain Corp. CEO Dawn Farrel also said

“Trans Mountain has demonstrated that challenging, long linear infrastructure can be built in Canada,” said Trans Mountain Corp. CEO Dawn Farrell in the statement.

Describing the length of the pipeline expansion project, she declared the management team was able to lay down 988 kilometers of new pipeline, 150 kilometers of reactivated pipeline, 19 storage tanks, and 12 new pump stations at Westridge Marine Terminal in Burnaby.

On such achievement Jon McKenzie, CEO of Cenovus Energy Inc. said “This is a great day for Canada, to get this pipeline up and running,”

“The people of Canada are going to see the benefit for a long period of time in terms of increased taxes and royalties and the like.”

From the takeoff to ascending of the 13-year-long proposed project had never looked like a seamless voyage. Since being forwarded in 2012, the pipeline expansion construction was initiated in 2018. The process was hurdled with various environmental and regulatory delays. It further witnessed a swirling extension of 6 years.

Cenovus’ McKenzie expressed his disappointment on Wednesday that a project of such national importance is far too long to hamper for 13 years and it should have never been extended for such a period.

He says that such major delays could set forth much larger issues. He was also, of the view that the federal government should find new efficient ways to develop further new projects

I think as a nation we suffer — and I don’t think I’m saying anything that people don’t already know — from lower and decreasing productivity, and we need to find ways to get major projects built to get infrastructure built to the benefit of all Canadians,” Said Mckenzie

Additionally, the government bought the pipeline for $4.5 billion. Due to several cost and time overrun delays, the Trans Mountain pipeline project caused a final budget of a mind-boggling $34 billion.

However, the major question arises: Will the cost spent on the Trans Mountain pipeline project ever be recovered from its sales?

An energy researcher and founder of Commodity Context newsletter, Rory Johnston expressed his concerns while considering the pipeline expansion overhead cost to what was initially estimated as “gigantic

Rory Johnston saidThere’s no way that you can have tolls high enough on TMX to cover a $34 billion budget,

He further statedThere’s no way anyone would pay the full cost of the pipeline because the tolls don’t support it. You’re going to need to discount it. You’re going to need to take a haircut of at least 50 % of this pipeline

Appreciating the construction team and the cooperation of Albertans towards the completion of the Trans Mountain pipeline expansion project, Alberta NDP Leader Rachel Notley shares her views

Good construction jobs – 35,000 of them; a better return on our resources; diversification of our markets; significantly increasing product to tidewater for the first time in a generation. For all of this, we celebrate today’s notable completion and commencement of operations of the Trans Mountain pipeline.

Leader of the governing United Conservative Party, Alberta Premier Danielle Smith acknowledged the pipeline expansion project which came out to be a golden gem for the country’s economy, and said

 “A new era of prosperity and economic growth.”

Industry watchers have analyzed the situation and consider it a cornerstone for Canada’s economic growth. Honed on the perspective that within a few years, the pipeline project will be operating at its full potential, with significant contribution of Alberta’s oil producer. Moreover, the time, cost, and additional barriers for similar projects would extensively be daunting to achieve.

Resource:

Oil begins moving on Canada’s $34B Trans Mountain pipeline expansion, Smith calls it ‘monumental’ | EverythingGP

$34B Trans Mountain pipeline expansion project opens after years of construction | Globalnews.ca

For its next trick, Ottawa must unload the $34B Trans Mountain pipeline. It won’t be easy | CBC News