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Canada: The government buys an oil pipeline at a high price, says the official report



The Canadian government Justin Trudeau paid a high price last year by nationalizing C $ 4.4 billion (2.9 billion euros) of the controversial pipeline Trans Mountain, according to a test agency report. public accounts on Thursday.

Faced with bottlenecks in Canadian oil pipelines and the oil industry uncertainty, in August 2018 Ottawa acquired the American Kinder Morgan pipeline linking Alberta's oilfields to the Pacific coast through the Rocky Mountains.

1200 km long and now saturated, it needs to be increased to 890,000 barrels of oil per day, according to the expansion project. However, the work has been slow to start due to a court decision and strong opposition from a part of the population of Western Canada.

In its report "Canadian Trans Mountain Pipeline: Financial and Economic Considerations", Parliament's Budget Office (PBO, an independent civil servant who provides Parliament with a permanent national accounts audit) estimates that this person's value is a pipeline of "3.6 billion to 4 $ 6 billion ".

"The Canadian government has paid $ 4.4 billion, which, according to our analysis, is at the highest level in the value range of the pipeline," said PBO Yves Giroux.

In 2016, enlargement was valued at US $ 7.4 billion, with the exception of the existing pipeline, but the PBO estimates that the new pipeline will "cost $ 9.3 billion to build and sell into force on December 31, 2021".

At the end of August 2018, the Canadian judicial system had sent this project, which was strategic to the Trudeau government, on the grounds that it had not sufficiently taken into account the fears of the region's indigenous groups, its impact on the environment, in particular that it is marine fauna .

In October, Ottawa announced that it would re-consult the relevant Aboriginal communities in the hope that they would be able to resume their work quickly.

"Any delay in construction or cost increases will affect the value of the pipeline," warned PBO.

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