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Trudeau’s Oil Pipeline Is a ‘Net Loss’ for Taxpayers, Watchdog Says

  • Cost increases mean Trans Mountain is no longer profitable
  • Its value is now C$600 million lower than purchase price
Oil storage tanks sit at the end of the Trans Mountain pipeline in Burnaby, British Columbia.
Oil storage tanks sit at the end of the Trans Mountain pipeline in Burnaby, British Columbia.Photographer: Darryl Dyck/Bloomberg
Updated on

Canadian taxpayers will lose money from Prime Minister Justin Trudeau’s decision to nationalize a pipeline after costs escalated amid delays in expanding the system, according to the country’s budget watchdog.

A project to expand the Trans Mountain Pipeline, Canada’s sole conduit for crude from Alberta’s oil sands to the Pacific Ocean, has faced repeated delays and cost increases since Trudeau’s government bought the system from Kinder Morgan Inc. in 2018.