Trans Mountain to Face More Delays Due to Route Adjustments

Just months before its scheduled start date, the controversial pipeline project expected to increase Canadian oil flows to the Pacific Coast could face a significant delay.

According to a letter sent to the Canada Energy Regulator on August 10, Trans Mountain is requesting a change in route due to engineering complications encountered when building a tunnel in British Columbia. Government-owned Trans Mountain stated in the document that if the adjustment isn’t authorized, the start date of the pipeline will be delayed and the cost will “significantly increase” above early estimates.

The project has experienced delays and cost overruns since it started more than a decade ago. All of these factors threaten the expansion’s ability to fulfill the government’s commitment to transport up to 890,000 barrels per day of oil from Alberta to water-borne exports near Vancouver, which will be beneficial for the Canadian economy.

The cost of the project is now $30.9 billion, four times more than the original price.

The most recent problem is a rerouting of about 1.3 km of pipeline that goes through the traditional territory of the Stk’emlpsemc te Secwépemc Nation. In a letter sent to Trans Mountain on August 4, the Stk’emlpsemc te Secwépemc Nation expressed their satisfaction with the tunneling that had been modified to address their concerns.

Changing the route comes as Trans Mountain is in the middle of renegotiating shipping fees. Canadian Natural Resources Ltd., along with numerous other companies that have signed contracts to utilize the line, asked for an extension of two weeks in order to submit views on tolls. Canadian Natural Resources Ltd. has warned that the new route may have “implications” for the line’s projected start date.