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Canada: Government buys oil pipeline at high cost, says the official report

Canadian government Justin Trudeau paid high cost of nationalization last year for the controversial Trans Mountain pipeline worth $ 4.4 billion, according to a report from the Verification Agency. public accounts published on Thursday.

Faced with narrow flaws in Canadian oil pipelines and uncertainties in the oil industry, Ottawa purchased the US gas pipeline Kinder Morgan that connects the Alberta oil fields along the Pacific coast in August 2018. Rocky Mountains.

1,200 km long, and saturated, has to triple to 890,000 barrels of oil per day, according to the extension project. However, work has started slowly because of court decision and strong opposition from a part of western Canada.

In its report "Canadian trans-national gas pipeline: financial and economic considerations," the Office of the Parliamentary Budget Officer (OOD, an independent civil servant providing the Parliament with a permanent public account audit) estimates that the gas pipeline value is between $ 3.6 billion and 4.6 billions of dollars ".

"The Government of Canada has paid $ 4.4 billion, which according to our analysis is at the peak of the gas pipeline value range," said PBO Yves Giroux.

The expansion is estimated at $ 7.4 billion in 2016, excluding the purchase of an existing gas pipeline, but the PBO estimates that the new gas pipeline will cost $ 9.3 billion for construction and commissioning on December 31, 2021. "

At the end of August 2018, the Canadian justice system sent this project, which was a strategic one for Trudeau's government, on the grounds that it did not sufficiently take into account the fears of indigenous groups in the region, its environmental consequences, especially marine fauna.

Ottawa announced in October that it would re-consult with the aboriginal communities in question, hoping to be able to resume the job quickly.

"Any delay in construction or any increase in costs will affect the value of the gas pipeline," OOD warned.

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