The company building the Trans Mountain pipeline expansion is warning that the project’s completion could be delayed by two years if the Canada Energy Regulator does not authorize a previously rejected change application.
Trans Mountain has nearly completed its expansion project, which would increase the pipeline’s capacity to 890,000 barrels per day from the current 300,000 and improve Canadian oil companies’ access to export markets.
The Crown corporation, however, is facing difficulties in British Columbia and has asked the regulator to authorize it to use different processes for a 2.3 km section of pipeline. The query is for diameter, wall thickness and coating.
The Régie rejected the request earlier this month.
Trans Mountain says it has reason to believe that continuing with the current construction plan in complex hard rock conditions could compromise a wellbore and lead to drilling equipment failure.
The company says if that happened, it would cause “catastrophic” delays to project timelines and billions of dollars in losses for Trans Mountain.
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