National Energy Board allows Trans Mountain project to commence

The National Energy Board says Trans Mountain Pipeline ULC can start construction on sections of its pipeline expansion between Alberta and British Columbia.

The NEB says in a statement Thursday that Trans Mountain has met all applicable pre-construction condition requirements for so-called segments one to four from the Edmonton terminal to its Darfield pump station near Kamloops, B.C.

The board says it has approved more than 96 per cent of the detailed route for these pipeline segments.

The NEB says Trans Mountain can begin construction, including clearing the right of way, subject to other government permits and regulations.

It says two active hearings remain for these segments and construction for work that relates to the hearings is not permitted while they’re pending.

The NEB says 72 per cent of the entire detailed route has been approved for the pipeline, and hearings for the final segment are scheduled to begin in Chilliwack, B.C., in October.

Trans Mountain’s parent company, Kinder Morgan, said in financial documents filed Aug. 7 with the United States Security and Exchange Commission it would cost $9.3 billion to build a second pipeline parallel to the existing one in order to triple its capacity to 890,000 barrels of oil a day.

The documents also suggest construction won’t be done until December 2021 — a full year beyond the last projection of December 2020.

Last spring, the federal government reached an agreement to purchase Kinder Morgan’s core Canadian assets for $4.5 billion to take ownership of the pipeline. The purchase price doesn’t include construction costs.

Kinder Morgan shareholders are expected to meet Aug. 30 in Calgary to vote on the proposed sale.