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Oil shippers on the Trans Mountain expansion (TMX) project are challenging proposed pipeline tolls filed by Canadian government-owned Trans Mountain Corp with regulators last month, citing concerns about significant costs increases. TMX will nearly triple the flow of crude from Alberta to Canada’s Pacific Coast to 890,000 barrels per day, and is due to start up early next year. But it has been beset by years of regulatory delay and is expected to cost C$30.9 billion ($23.50 billion), nearly quadruple the original estimate. The Canadian government bought the pipeline in 2018 to ensure the expansion got built. Over the past week companies including Suncor Energy , Cenovus Energy and BP Plc registered to intervene in Trans Mountain Corp’s toll application, which proposed a base toll of C$11-C$12 a barrel, depending on the type of crude shipped and its final destination. “Cenovus is concerned about the escalation in costs and expenses to construct the expanded system,” the Calgary-based company wrote in a letter of comment to the Canada Energy Regulator (CER). Trans Mountain said the pipeline toll was based on the latest project cost estimate and could rise by around C$0.07 a barrel for every extra C$100 million spent on […]
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