Trans Mountain Corp. told contractors on its pipeline expansion project to be ready to begin work within 30 days as the government-owned company prepares to restart after almost a year of regulatory chaos.
The Calgary, Alberta-based company issued "Notice to Proceed" directives to some of its main contractors. The work will be centered around Trans Mountain's Westridge Terminal near Burnaby, British Columbia, and along stretches of pipe within Alberta. The directives give contractors just under a month to mobilize equipment, hire crews and provide detailed construction plans for their projects. The deadline would see construction start by mid-September, fulfilling a vow by Prime Minister Justin Trudeau to have "shovels in the ground" by then.
Trans Mountain CEO Ian Anderson described the notices as "another significant milestone" in developing the project, which would see the capacity of the Eisenhower-era pipeline network almost tripled to 890,000 barrels per day from 300,000 bbl/d. "With the first wave of regulatory approvals complete, we are confident that we have a path forward by which the expansion project construction can commence," Anderson said.
Canada stepped in and bought the pipeline for C$4.5 billion from Kinder Morgan Inc. in 2018 after the Houston-based midstream giant threatened to walk away from the expansion project because opposition from other levels of government, First Nations and environmentalists hampered progress. The day before the transaction closed in late August 2018, a court invalidated the project's construction permits, and the government was forced to redo the regulatory process. The government reissued approval for the project in June. The cost of the project was last pegged at C$7.4 billion and is now estimated to be more than C$9 billion with shipments expected to start in 2022.
Pipe is unloaded at a storage yard in July for Trans Mountain Corp.'s expansion project. |
The line, which carries oil sands-derived crude and refined products to Canada's West Coast and refineries in Washington, has been the source of intergovernmental tension between Alberta and British Columbia. Canada's westernmost province opposes the pipeline expansion, while Alberta has sought to pressure its neighbor with legislation that would allow it to cut shipments on Trans Mountain. The line carries most of the refined fuel consumed in the province, which has only a handful of small refineries of its own.
Trans Mountain said it expects to receive the remaining permits for construction of the line "in the coming months." Several groups have already started action to halt the construction, including threats of renewed court challenges. In addition to restarting onshore work at the Burnaby and Westridge sites, construction is expected to begin on a stretch between Edmonton, Alberta, and the British Columbia border. Protests and demonstrations against the project when it was previously under construction resulted in hundreds of arrests near the British Columbia terminal.
"History has shown us that there are a small minority of individuals who are willing to break the law to prevent responsible resource development in Canada, and they must not be allowed to essentially veto a project that is vitally important — not only to Alberta, but to all of Canada," Alberta Premier Jason Kenney said in response to the announcement.
British Columbia Premier John Horgan, who said after the June approval that his province would continue to oppose the project in court, has nevertheless promised that his government will issue the approvals to allow it to proceed.

