Trans Mountain pipeline expansion cost estimate rises to $12.6B - CityNews Vancouver | Canada News Media
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Trans Mountain pipeline expansion cost estimate rises to $12.6B – CityNews Vancouver

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VANCOUVER (NEWS 1130) – The estimated cost of the Trans Mountain pipeline expansion project has jumped significantly.

Trans Mountain says the estimate to build the line has risen to $12.6-billion, representing a 70 per cent increase to the original $7.4-billion projection, which was first made by the previous owner, Houston-based Kinder Morgan Inc.

“I wish I could say that’s exactly how I saw things unfolding and that the process is what I expected it to be, but obviously I can’t,” Trans Mountain President and CEO Ian Anderson says. “My only comfort is that I’m sure that there isn’t anyone that could have pictured the journey that we’ve been on for the last several years to get this project started, and what it will take to get it completed.”

Minister of Finance Bill Morneau says Canadians should get a “fair price” for its resources and argues almost all of the country’s energy exports are being sold at a discounted price to the U.S.

“Getting out resources to global markets in a way that is efficient and safe is Canada’s best interest. Construction of this Project is underway and will create thousands of good middle-class jobs in Western Canada — in construction, engineering, and finance.”

He cites comprehensive consultation with 129 Indigenous communities on economic participation and says the second wave of discussion could be underway.

The company expects the expansion will be completed by 2022, and believes the project is still commercially viable.

On Tuesday, the Federal Court of Appeal dismissed four challenges to the federal government’s approval of the expansion project for a second time. In a unanimous ruling, three judges said the government’s decision to approve the Trans Mountain project was reasonable and would stand, despite First Nations arguing at a December hearing that the government went into consultations with Indigenous communities in the fall of 2018 having predetermined the outcome in favour of the expansion.

The judges said the cabinet’s second round of consultations was “anything but a rubber-stamping exercise.”

The expansion has been a controversial topic for some time now, with opponents attacking the greenhouse gas emission and oil spill risks of the project.Some have been charged it will be a money-loser with unproved markets in Asia that will fail financially and leave the public holding the bag.

Meanwhile, Anderson says the company is recommending that Ottawa, as owner and lender, set aside a further $600 million reserve for cost impacts beyond the control of Trans Mountain.

The expansion will nearly triple the 300,000-barrel-a-day capacity of the existing pipeline, which carries crude oil and refined products from Edmonton to Burnaby Mountain.

“We’re well under construction at our terminals in Burnaby, on the water at Westridge, and at our tank terminal, and we’re on the right of way in Alberta, as you know,” Anderson says. “We had pipe in the ground in Alberta before Christmas and that progress is continuing well.”

He added all construction is expected to be underway in both B.C. and Alberta before the end of the year.

Kinder Morgan sold the expansion project and existing pipeline to the federal government in 2018 for $4.5-billion.

-With files from Ash Kelly

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Carry On Canadian Business. Carry On!

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1 day ago

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October 22, 2024

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Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

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Imperial to cut prices in NWT community after low river prevented resupply by barges

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October 22, 2024

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NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

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October 22, 2024

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TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

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