Feds paid on high end for Trans Mountain pipeline, spending watchdog says

he government bought the pipeline from Kinder Morgan in August

Canada’s parliamentary budget watchdog says the Liberal government paid the “sticker price” when it bought the Trans Mountain pipeline from Kinder Morgan for $4.5 billion.

Parliamentary Budget Officer Yves Giroux estimates the Trans Mountain pipeline and planned expansion project are worth between $3.6 billion and $4.6 billion.

This means government’s purchase price of $4.5 billion was on the high end of the project’s total calculated value.

Giroux also estimates expanding the pipeline’s capacity will cost $9.3 billion if the project is completed by Dec. 31, 2021.

READ MORE: Premier Rachel Notley says Alberta to ease oil production cuts

He warns any construction delays or increases in costs would reduce the value of the project and its resale value, meaning the government could have overpaid for the pipeline.

The government bought the pipeline from Kinder Morgan in August after political opposition to expanding the pipeline between Alberta and the B.C. coast gave the company and its investors cold feet.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

High winds could lead to dangerous snowmobiling conditions

Advice for staying safe on the mountains Family Day weekend

Clearwater Library hosting open house

Event takes place Feb. 15 from 2—4 p.m.

Province announces $100-million grant funding for Northwest communities

The Northern Capital and Planning Grant will go to four regional districts and 22 municipalities

Road conditions for Feb. 15

Slippery sections on Highway 5

B.C. students win Great Waters Challenge video contest

Video, mural and song about saving the salmon claims the top prize

Cabinet likely to extend deadline to reconsider Trans Mountain pipeline

The can’t decide the pipeline’s fate until a new round of consultations with Indigenous communities

B.C. government provides $75,000 towards salmon study

Study looks at abundance and health of Pacific salmon in Gulf of Alaska

Murdered and missing honoured at Stolen Sisters Memorial March in B.C.

‘We come together to make change within the systems in our society’

UBC researchers develop inexpensive tool to test drinking water

The tricoder can test for biological contamination in real-time

Disgraced ex-Congressman Anthony Weiner released from prison

He was convicted of having illicit online contact with a 15-year-old North Carolina girl in 2017

B.C. communities push back against climate change damages campaign

Activists copying California case that was tossed out of court

Most Read