Trans Mountain alerts regulator of potential ‘catastrophic’ 2-year pipeline delay

Click to play video: 'First Nation fights the feds for compensation on original Trans Mountain pipeline'
First Nation fights the feds for compensation on original Trans Mountain pipeline
A First Nation says the federal government and pipeline giant Trans Mountain have failed to live up to a court ruling six years ago calling on them to address a historical wrong. The Coldwater Indian Band near Merritt, B.C. was given $1,292 in compensation for Trans Mountain’s original line, built in the 1950s. This, as the feds cut the pipeline company a $1.8M tax break around the same time. As Kamyar Razavi reports, the case may be old, but the Chief says it shows the feds talk a lot about reconciliation – but still fail to act. – Dec 12, 2023

The company building the Trans Mountain pipeline expansion is warning the project’s completion could be delayed by two years if the Canada Energy Regulator does not allow a previously rejected request for a pipeline variance.

Trans Mountain Corp. is nearly finished building the expansion, which will boost the pipeline’s capacity to 890,000 barrels per day from 300,000 bpd currently and improve access to export markets for Canadian oil companies.

But the Crown corporation has run into construction issues in B.C. and has asked the regulator to allow it to use a different diameter, wall thickness and coating for a 2.3 kilometre section of pipeline.

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The regulator denied that request earlier this month.

But Trans Mountain says it now has reason to believe that proceeding with the current construction plan through complex hard rock conditions could compromise a borehole and result in the failure of drilling equipment.

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The company says if that happens, it would result in “catastrophic” delays to the project’s timeline and billions of dollars in losses for Trans Mountain.

This report by The Canadian Press was first published Dec. 15, 2023.

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