Trans Mountain Says Shippers Are Mostly Shielded From Cost Rise
- Oil shippers to bear 20% to 25% of cost increase through tolls
- Pipeline project’s estimated cost jumped 70% for second time
Barbed wire fencing stands at the Trans Mountain pipeline expansion site in Burnaby, Canada, in 2018.
Photographer: Ben Nelms/BloombergThis article is for subscribers only.
Trans Mountain Corp. will mostly shield its shippers from the 70% increase in costs to build a new oil pipeline to the Pacific, helping to keep the key project a viable oil conduit for reaching Asian markets viable.
Just 20% to 25% of the cost increases will be passed on through higher tolls to the companies that will be shipping oil on the line, the company said in an email Wednesday. Tolls will be filed with the Canada Energy Regulator shortly before the pipeline begins service.