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

Championship action kicks off tonight at Langley Events Centre

Giants prepare to do battle in Game 1 of the Western Conference finals Friday on home ice

PHOTOS: Langley RCMP volunteers ‘represent the best of our community’

Dozens were honoured Thursday night during the 27th annual Langley RCMP’s volunteer dinner

Langley MP describes most recent diagnosis as a ‘miracle’

Tory Member of Parliament Mark Warawa doesn’t have pancreatic cancer, but operable colon cancer

Langley Advance Times Community Calendar: April 18, 2019, edition

• Submit Langley events to: news@langleyadvancetimes.com (Subject: Community Calendar)

VIDEO: Alberta man creates world’s biggest caricature

Dean Foster is trying to break the world record for a radio show contest

B.C. RCMP receive application for Police Cat Services

RCMP announced the launch of the Police Cat Services unit as an April fools joke

Rats available for adoption in Vancouver

In a social media post the City of Vancouver says you can adopt a rat for $5.

Kirkland Signature veggie burgers recalled due to possible metal fragments

Recalled products came in 1.7 kg packages with a best before date of Apr. 23, 2019

Chaos at the ferry terminal for people heading from Vancouver to the Island

Easter crowds create backlog at Tsawwassen ferry terminal

Parents of 13 who tortured children get life after hearing victims

One of their daughters fled their home and pleaded for help to a 911 operator

Crews battle Burnaby blaze; 2 people sent to hospital

Emergency Support Services helping residents displaced by fire

Flooding, climate change force Quebecers to rethink relationship with water

Compensation for victims of recurring floods limit to 50% of a home’s value, or a maximum of $100,000

Storms blast South, where tornadoes threaten several states

9.7 million people in the Carolinas and Virginia at a moderate risk of severe weather

Most Read