August 7, 2018 3:58 pm
Updated: August 8, 2018 1:07 am

Cost to twin Trans Mountain pipeline now $1.9B higher, Kinder Morgan says

New documents show expanding the Trans Mountain pipeline could cost the federal government as much as $2 billion beyond Kinder Morgan's original construction estimate. Keith Baldrey has reaction.

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Kinder Morgan Canada documents say expanding the Trans Mountain pipeline will cost the federal government another $1.9 billion beyond the company’s original construction estimate and will take another full year to complete.

The figure is included in documents Kinder Morgan Canada filed Tuesday with the United States Security and Exchange Commission related to the company’s plan to sell the pipeline to the Canadian government for $4.5 billion.

READ MORE: Trudeau defends decision to buy Trans Mountain pipeline at Vancouver Island event

Kinder Morgan has long said it would cost $7.4 billion to build a second pipeline parallel to the first in order to triple its capacity, but the financial documents now say the company expects a $9.3-billion price tag.

GLOBAL NEWS COVERAGE OF KINDER MORGAN DISPUTE

The documents also suggest construction won’t be done until December 2021 — a full year beyond the last projection of December 2020.

READ MORE: Trans Mountain pipeline work to resume in August: Kinder Morgan Canada boss

Finance Minister Bill Morneau has been reluctant to discuss how much more it will cost to build the pipeline while the deal is still being finalized, and the closing date for that deal is now being pushed back well into the fall.

The documents also say shareholders will meet Aug. 30 in Calgary to vote on the proposed sale.

© 2018 The Canadian Press

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