Canada Regulator Clears Latest Trans Mountain Pipeline Delay of Environmental or Safety Concerns
(Reuters) — The Canada Energy Regulator (CER) said on Wednesday that it has not noted any environmental or safety concerns with the latest construction challenges to plague the Trans Mountain pipeline expansion.
Earlier this week Trans Mountain TMC.UL said it had run into technical issues and faces new delays as it tries to complete the final leg of the C$30.9 billion ($23.00 billion) oil pipeline project, which is already years behind schedule and running at more than four times its original budget.
The Canadian-government-owned corporation ran into difficulties while installing a section of pipeline through a mountain in British Columbia, known as the Mountain 3 crossing.
The CER said it has inspection officers and Indigenous monitors currently on site as part of standard compliance activities.
"No safety or environmental concerns have been noted, and we will continue to monitor the situation," the regulator said in a statement.
Trans Mountain had expected to complete the Mountain 3 crossing this week and start pipeline operations in April. News of the latest setback pushed Canadian crude prices lower.
Oil industry participants are awaiting further information on how serious the technical issues are. Trans Mountain expects the expanded pipeline, which will nearly treble the flow of oil from Alberta to Canada's Pacific Coast to 890,000 barrels per day, will start shipping in the second quarter.
The CER also released its reasons for approving on Jan. 12 a variance request from Trans Mountain to install a smaller-diameter pipe in the Mountain 3 crossing, after denying the same request in December.
The regulator said it decided the variance was in the public interest after Trans Mountain made new commitments around pipeline inspections and demonstrated it would use effective quality management processes to procure materials to build the Mountain 3 crossing.
($1 = 1.3433 Canadian dollars)
Related News
Related News
- Texas Waha Hub Gas Prices Plunge to Record Lows, Hit Negative Territory
- U.S. Appeals Court Strikes Down Controversial Biden Pipeline Safety Rules
- Williams Seeks Emergency Certificate to Operate $1 Billion Mid-Atlantic Gas Pipeline After Court Reversal
- Texas Oil Pipelines Near Max Capacity, Threatening Future Export Limits
- Energy Transfer Subsidiary Selects KTJV for Lake Charles LNG Export Project
- Saudi Arabia Looking to Expand Pipeline to Reduce Oil Exports via Gulf
- Report: Houston Region Poised to Become a Global Clean Hydrogen Hub
- Texas Startup Endeavors Again to Build First Major U.S. Oil Refinery Since 1977
- Puerto Bahia, Gasco to Build Liquefied Petroleum Gas Facility in Cartagena, Colombia
- Ukraine Approves $20 Billion Plan to Boost Renewable Energy to 27% by 2030
Comments