Trans Mountain Expansion suffers another set-back

Trans Mountain Expansion suffers another set-back

Kinder Morgan Canada warned again this week that permitting delays in the province of BC will again push back the in-service date for its Trans Mountain Expansion Project (TMEP).

The line was initially supposed to be up and running by the of 2019, then pushed back to the fall of 2020, and now likely delayed another three months to the end of 2020.

Although the company recently won a court case against the City of Burnaby on permitting requirements at its Westridge Marine Terminal, Kinder Morgan says numerous provincial and municipal permits are still pending, while various federal conditions have yet to be addressed.

The company says the scope and pace of permit approvals does not give it the "clear line of sight" it needs to progress construction. As such, TMEP's 2018 budget will shift from construction costs to the permitting process.

Earlier today, the National Energy Board (NEB) outlined a procedure for resolving conflicts with provincial and municipal levels of government. Under the new process, it should take three to five weeks for the NEB to reach a decision from the time a request is filed.

The regulator reminds Kinder Morgan it is still required to comply with applicable provincial and municipal laws, and also expected to "exercise good Project planning and allow sufficient time to properly engage provinces and municipalities."

TMEP was approved by the NEB in December of 2016, subject to 157 conditions. The pipeline will transport an additional 590,000 bbl/day of Alberta crude to tidewater in Vancouver and refineries in Washington State.

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