Government expected to take losses in Trans Mountain project, expert says
BNN Bloomberg
The federal government’s Trans Mountain pipeline project is nearly 80 per cent complete, but at least one expert believes it might never turn a profit.
The beleaguered pipeline was originally supposed to cost upwards of $15 billion, but cost overruns, higher tariffs and delays have nearly doubled the price tag, with further delays possible.
As of March, Trans Mountain Corporation projected costs at $30.9 billion and completion in 2024.
Stephen Ellis, equity strategist at Morningstar Research Services, was in favour of the project in the beginning, as it was meant to more easily transport oil from Alberta to Asia, but now he said project costs have made it nearly impossible to turn to a profit, and companies have found cheaper solutions.
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