The expanded Trans Mountain pipeline should be in service before the end of June, according to the Crown corporation's forecast.
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After 12 years of “quite a journey,” the Trans Mountain pipeline expansion project is almost complete, according to the Crown corporation’s chief financial officer, Mark Maki. In an interview, the latter believes that despite the delays and the high cost of the project, the repercussions will be positive for Canadians.
Contrary to the Prime Minister of Alberta, Mark Maki is cautious about disclosing an exact commissioning date and limits himself to the period of the second quarter of 2024.
A portion of the pipeline, in the Fraser Valley, British Columbia, is still under construction. The pipeline must be passed through a sector which has already caused problems for the state company in the past.
Cleaning work has was also halted last week after inspectors from the Canada Energy Regulator discovered company contractors near an active red-tailed hawk nesting site (New window).
Based on internal reports, we are happy with the progress of construction, says Mark Maki.
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Motion condemning Michaud: “I live well with my vote,” says François Legault -sc-48221190-4 hnvfyV”>Oil already fills a small portion of the approximately 1,000 km of pipelines that will ultimately stretch from Edmonton to Burnaby, in Metro Vancouver.
The state-owned company also submitted 39 requests for commissioning authorizations. The Canada Energy Regulator expects to receive more than forty.
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Trans Mountain CFO Mark Maki said he was pleased to be able to present a nearly completed project at the CERAWeek energy conference.
We are reaching end and it's a reason to be proud. We are doing something that is good for the country, says Mark Maki in Houston, Texas, where he is attending the CERAWeek conference by S&P Global.
The financial director confirms that the total cost of the project is now estimated at around $34 billion. Justin Trudeau's government purchased the project for $4.5 billion in 2018.
Mark Maki lists a long list of reasons for the increase in the bill: the uncertainty of the regulatory process, the pandemic, wildfires, floods…
The economic impact of this project will be positive. Yes, it’s expensive to do projects properly. This is the cost of building infrastructure in this country.
A quote from Mark Maki, CFO of Trans Mountain
Oil is aimed at US West Coast and new Asian markets. According to Bloomberg, the Chinese company Sinochem has already purchased one of the first cargoes of oil that the pipeline will transport.
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The expansion project will almost triple the number of barrels of oil transported between Alberta and British Columbia.
Thanks to this access, Alberta producers expect to be able to sell their black gold at a better price, which will increase Alberta royalties and, indirectly, tax benefits for the federal government.
Many oil markets around the world are stagnant and not receiving large investments. Canada continues to grow because the tar sands are not running out, says Raoul LeBlanc, an analyst at S&P Global, who adds: [This pipeline] is going to have a lot of consequences.
Mark Maki also argues that the project has obtained the support of many First Nations. However, some are vigorously opposed to it.
The pipeline has also drawn criticism from several environmental organizations who are concerned about the consequences of increased maritime traffic on the killer whale population.
Despite his positive tone, the financial director thinks that Canada should learn lessons from this project which he describes several times as a trip. The project to expand the current Trans Mountain pipeline was first proposed in 2012 by the company Kinder Morgan, which owned it at the time.
Whether it's an oil pipeline, a gas pipeline, a transmission line, all of these projects cross large distances in important areas and impact many First Nations. We will have to understand the cost of building infrastructure, he explains.
The ability to carry out projects more efficiently is going to be important for the future of this country. We must do better.
