Feds paid on high end for Trans Mountain pipeline, spending watchdog says

he government bought the pipeline from Kinder Morgan in August

Canada’s parliamentary budget watchdog says the Liberal government paid the “sticker price” when it bought the Trans Mountain pipeline from Kinder Morgan for $4.5 billion.

Parliamentary Budget Officer Yves Giroux estimates the Trans Mountain pipeline and planned expansion project are worth between $3.6 billion and $4.6 billion.

This means government’s purchase price of $4.5 billion was on the high end of the project’s total calculated value.

Giroux also estimates expanding the pipeline’s capacity will cost $9.3 billion if the project is completed by Dec. 31, 2021.

READ MORE: Premier Rachel Notley says Alberta to ease oil production cuts

He warns any construction delays or increases in costs would reduce the value of the project and its resale value, meaning the government could have overpaid for the pipeline.

The government bought the pipeline from Kinder Morgan in August after political opposition to expanding the pipeline between Alberta and the B.C. coast gave the company and its investors cold feet.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Fisheries and oceans minister spends Earth Day in Nanaimo-Ladysmith

Jonathan Wilkinson in riding to support candidate Michelle Corfield

Earth Day in Nanaimo celebrates the Earth and its inhabitants

Plant a tree, pet a wolf, and see grand opening of Georgia Greenway at Nanaimo Earth Day festival

Climate action can’t be a partisan issue, say Greens

Green Party of Canada celebrated Earth Day early in Nanaimo

Editorial: Climate change is a good reason to cast a vote

Different choices around climate action and inaction will be on the ballot in Nanaimo-Ladysmith

Humboldt memorial hockey tournament will make its return in Nanaimo

Fundraising tournament set for Nanaimo North Town Centre parking lot on May 5

Climate action can’t be a partisan issue, say Greens

Green Party of Canada celebrated Earth Day early in Nanaimo

B.C. VIEWS: NDP’s lawyer show is turning into a horror movie

Court actions pile up over pipelines, car insurance, care aides

United Way opens grants to help charities tackle social issues

Charities north of the Malahat can apply for grants $2,000 to $20,000

Second earthquake in less than two hours strikes off Vancouver Island

The first earthquake happened at 1:27 p.m., the second at 2:44 p.m.

Man’s body found in popular Cowichan Valley hiking area

Police say death not suspicious after discovery in Stoney Hill area overlooking Saltspring Island

Anti-immigration party is on the ballot in Nanaimo-Ladysmith

Opposing candidate says National Citizens Alliance’s participation ‘highly problematic’

Clippers optimistic as they put finishing touches on cup-hosting bid

Nanaimo’s junior A hockey club hopes to host RBC Cup nationals in 2020-21

PHOTOS: Green Party Leader Elizabeth May says ‘I do’ on Earth Day

May and John Kidder got married Monday morning in Victoria

Vancouver Island-based company provides glass alternatives to plastic straws

Enviro Glass Straws now producing more than 60,000 straws each year

Most Read