Trans Mountain expansion shippers concerned about pipeline variance request (updated)

Canada Energy Partners

01/12/2023 01:34

(Adds details from shippers' letter)
    By Nia Williams
       Nov 30 (Reuters) - 
    Committed shippers on the Trans Mountain pipeline expansion
(TMX) on Thursday wrote to the Canada Energy Regulator (CER) to
express concerns about the project's request for a variance on a
section of the pipeline in British Columbia.
    Trans Mountain has asked regulators to be allowed to install
smaller diameter pipe in a 2,300-metre (7546-foot) section of
the oil pipeline, after encountering "very challenging"
construction conditions due to the hardness of the rock in a
mountainous area between Hope and Chilliwack.
        The variance request is the latest potential hurdle that
the troubled project must overcome to stay on schedule and start
operations by the end of the first quarter of 2024.
  
        At an oral hearing on Monday, Trans Mountain told the
CER that denying the variance request would likely add an extra
55-60 days to the construction schedule.
  
        The CER is set to make a decision in coming days.
  
    A law firm representing five shippers including Canadian
Natural Resources Ltd  CNQ.TO  and Suncor Energy  SU.TO  wrote
to the regulator to express "concerns" with the request. 
        The companies acknowledged the importance of Trans
Mountain's schedule and urged the CER to ensure any actions
taken would not contribute to the project being delayed.
  
        "However, should the variance lead to any adverse
effects or unforeseen impacts affecting the shippers, it is
imperative that Trans Mountain bears all responsibility for
rectifying these issues in a timely and reasonable manner and at
its sole cost, risk and expense," the letter said.
  
        The C$30.9 billion expansion project will add 590,000
barrels per day (bpd) of capacity from Alberta's oil sands to
Canada's Pacific coast, but has been beset by regulatory delays
and cost over-runs and was purchased by the Canadian government
in 2018 to ensure it got built.
  
        The companies' expression of concern comes the same day
the CER 
    approved
     preliminary interim shipping tolls on the expanded
pipeline, which many shippers had opposed.
  

 (Reporting by Nia Williams; 
Editing by Sandra Maler and Diane Craft)
 ((nia.williams@thomsonreuters.com; +1 403 531 1624; Reuters
Messaging: nia.williams.thomsonreuters.com@reuters.net))