Trans Mountain pipeline project cost estimate raised by another $3.1B (NYSE:CNQ)
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The Trans Mountain pipeline expansion will cost ~C$3.1B more than the Canadian government-owned company running the project previously expected, bringing the total cost to C$34B, ~10% above the most recent estimate, according to a filing Monday with the Canada Energy Regulator.
The latest cost increase, due to construction difficulties, marks another setback for the project that was supposed to cost C$5.4B when it was first estimated in 2013.
Trans Mountain said in the filing that commencement for firm service contracts with shippers is May 1, a one-month delay from its prior launch date, RBC Capital analysts said.
The expansion will nearly triple the flow of crude from Alberta to Canada’s Pacific Coast to 890K bbl/day but has been plagued by years of delays and cost overruns.
Among potentially relevant stocks: Canadian Natural Resources (NYSE:CNQ), Suncor Energy (SU), Cenovus Energy (CVE), MEG Energy (OTCPK:MEGEF).
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