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Canada’s Trans Mountain expansion project looks on track for a Q2 start, after the operator said Wednesday it successfully removed a pipe that had been stuck in a section in British Columbia.
The pipeline, which is owned by the Canadian government, has been plagued by delays and cost overruns, but the latest update should offer some hope to Canadian oil sands producers that oil will begin flowing through the conduit this spring.
A filing earlier this week with the Canada Energy Regulator said the expansion project will cost ~C$3.1B more than previously expected, bringing the total cost to C$34B, ~10% above the most recent estimate.
Trans Mountain said in the filing that commencement for firm service contracts with shippers will begin on May 1.
Potentially relevant stocks include Canadian Natural Resources (NYSE:CNQ), Suncor Energy (SU), Cenovus Energy (CVE), MEG Energy (OTCPK:MEGEF).