Trans Mountain faces regulatory hearing on pipeline variance request (updated)

Canada Energy Partners

24/11/2023 19:22

(Adds details from CER letter after paragraph 3)
    By Nia Williams
       Nov 24 (Reuters) - The Canada Energy Regulator (CER) has
ordered the company building the Trans Mountain oil pipeline
expansion (TMX) to appear at an oral hearing on Monday, as the
regulator weighs whether to approve a variance request from the
project.
    Trans Mountain Corp, which is owned by the Canadian
government, last month applied for a variance on a section of
pipeline between Hope and Chilliwack, British Columbia, after
encountering "very challenging" construction conditions due to
the hardness of the rock it needs to drill through.
    The company wants to install a 30-inch-diameter (76 cm) pipe
instead of a 36-inch (91 cm) pipe as planned, which would
shorten the installation schedule by approximately 55-60 days.
        In a letter dated Nov. 23, the CER said it requires
"further information or justification" regarding Trans
Mountain's submissions so far, and will hold an oral hearing in
Calgary on Monday.
  
        Trans Mountain had asked the regulator to make a
decision on the variance request by Nov. 30 to "advance the
timely completion" of the expansion project.
  
        TMX will ship an extra 590,000 barrels per day of crude
from Alberta to Canada's Pacific Coast. The C$30.9 billion
project has been plagued by cost overruns and regulatory delays.
  
        The expanded pipeline is scheduled to start operating
late in the first quarter of 2024, and any further construction
hold-ups risk delaying the start date.
  
        Earlier this month TMX was ordered to 
    stop work
     for nearly two weeks after regulators found several
environmental non-compliance issues in a wetland area near
Abbotsford, British Columbia.
  
        In September, the CER 
    approved
     a route deviation request from TMX for a section of
pipeline near Kamloops, despite opposition from local Indigenous
groups.
  
        The CER said no other parties had expressed concern
about TMX's latest variance request.
  

 (Reporting by Nia Williams; Editing by Mark Porter and Leslie
Adler)
 ((nia.williams@thomsonreuters.com; +1 403 531 1624; Reuters
Messaging: nia.williams.thomsonreuters.com@reuters.net))