The project has cost about $2.5 billion to date, including the impact of delays and additional regulatory processes, leaving an additional $8.4 billion needed to complete construction, plus $1.7 billion of financial carrying costs, said president and CEO Ian Anderson on a conference call on Friday.
"Nor is it the one we last provided a cost estimate for in early 2017. It isn't even the one we envisioned as early as 2018 when our ownership changed. It's much, much more today." The estimate of $7.4 billion was made in 2017 by the previous owner, Houston-based Kinder Morgan, Inc., which sold the expansion project and existing pipeline to the federal government in 2018 for $4.5 billion amid doubts that it could be built in the face of opposition from the province of B.C.
"Any time a major project increases its cost by this much you have to hit the pause button and reconsider whether or not you're still getting value for the taxpayer," he said. He pointed out 80 per cent of the space on the pipeline is contracted for 20 years to 13 clients including domestic oilsands producers like Suncor Energy Inc. and Canadian Natural Resources Ltd., as well as international firms such as Total S.A. and a subsidiary of PetroChina.
Cancel it there are too many problems that can happen.
If our idiot prime minister would have forced this through when he should have this would not be an issue.