CANADA’S TRANS MOUNTAIN PIPELINE TO EARN AFTER KEYSTONE JUNKING
The expansion of Canada’s government-owned Trans Mountain pipeline assumes greater importance for the oil sector after the cancellation of rival Keystone XL reduced future options to carry crude, potential buyers say, Rod Nickel and Steve Scherer reported for Reuters.
Trans Mountain Corp, a government corporation, is spending C$12.6 billion ($9.9 billion) to nearly triple capacity to 890,000 barrels per day (bpd), a 14% increase from current total Canadian capacity.
Prime Minister Justin Trudeau’s government bought the 68-year-old pipeline in 2018 when previous owner Kinder Morgan faced legal hurdles to expand the 1,150-kilometer (715-mile) line running from Alberta to the British Columbia coast. Ottawa has always said it would find new owners.
This week, US President Joe Biden revoked the presidential permit for TC Energy’s Keystone XL pipeline (KXL), undoing efforts by former President Donald Tump to build the line that would have supplied U.S. refiners with 830,000 barrels per day (bpd) of Canadian oil.
That decision has made the case for completing Trans Mountain’s expansion stronger.
“This pipeline is even more valuable now,” said Joe Dion, chief executive of Western Indigenous Pipeline Group, one of several First Nations groups interested in buying Trans Mountain. “Everybody thought Trudeau wasn’t going to get things done in Canada, and he’s the one who successfully got a pipeline over Trump.”
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