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

Photos: Sicamous braves the frigid lake waters for polar bear swim

Eager swimers lined the lakeside despite a frosty morning

Sparks fly off Steinway Grand during Vernon Valentine’s show

CONCERT REVIEW: NOCCA piano duo impresses

Fundraiser started for mother who had stroke while visiting Central Okanagan family

Tina Parry was visiting her daughter Rita Bruce Nanakeain and grandsons when she had a stroke

Salmon Arm students win province-wide Great Waters Challenge

Video, mural and song about saving the salmon claims the top prize

Nursing students bring their passion for helping the homeless to Salmon Arm

The need for an outreach worker is near the top of their wish list

VIDEO: Historic night in Red Deer as 2019 Canada Winter Games kicks off

Star-studded Opening Ceremony features athletes from across Canada

SilverStar Emergency Services Day raises funds for hospital

Over $20,000 was raised for the Vernon Jubilee Hospital Foundation

James says B.C. budget puts priorities on NDP’s poverty, environment plans

She said she expected the government’s poverty reduction and climate change strategies to be priorities in the budget

PHOTOS: Day 1 of the 2019 Canada Winter Games in Red Deer

Games kicked off in Red Deer this week

Ammonia leak shuts down curling club in Nelson

It’s not yet clear when the leak was detected

Pavelski’s 31st goal helps Sharks top Canucks 3-2

Vancouver one point out of second NHL wild-card spot

Junior Bonspiel sweeps away the winter blues in Salmon Arm

Youth curlers take to the ice for circus-themed sompetition

Eight cases of measles confirmed in Vancouver outbreak

Coastal Health official say the cases stem from the French-language Ecole Jules Verne Secondary

Ontario police field complaints over Amber Alert for missing girl, 11, found dead

Some said the Amber Alert issued late Thursday for Riya Rajkumar disrupted their sleep

Most Read