Canada regulator says no environmental or safety concerns with latest Trans Mountain delay (updated)

Canada Energy Partners

01/02/2024 24:05

(Adds details on technical issues encountered by Trans
Mountain, quote from CER)
    By Nia Williams and Rahul Paswan
       Jan 31 (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)

 (Reporting by Rahul Paswan in Bengaluru; Editing by Chris Reese
and Leslie Adler)
 ((RahulKumar.Paswan@thomsonreuters.com ; If within U.S. +1 646
223 8780;;))