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Canada: The government is buying an oil pipeline at high prices, according to an official report



The Canadian government of Justin Trudeau paid a high price by nationalizing last year for the controversial Trans-Planina gas pipeline for 4.4 billion euros (2.9 billion euros), according to a report by the agency's verification public accounts released Thursday.

Faced with bottlenecks in Canada's oil pipelines and uncertainty in the oil industry, in August 2018, Ottawa redeemed the American Kinder Morgan Gas Pipeline linking Alberta's oil fields off the coast of the Pacific through the Rocky Mountains.

The length of 1,200 kilometers, and currently saturated, must be a tripled capacity of up to 890,000 barrels of oil a day, according to the enlargement project. However, the job is slow to start due to a court decision and a strong opposition from a part of the population in western Canada.

The Office of the Parliamentary Budget Officer (COO, an independent public official who provides Parliament with a permanent audit of public accounts), in its report Transoceanic Highway Canada: Financial and Economic Considerations estimates that the value of the pipeline is between $ 3.6 billion and 4.6 billion dollars ".

"The Canadian government paid $ 4.4 billion, which is at a high level from the scope of pipeline prices according to our analysis," said PBO Yv Gyro.

The expansion was estimated at $ 7.4 billion in 2016, with the exception of the purchase of an existing pipeline, but the PBO estimates that the new pipeline "will cost $ 9.3 billion for construction and will enter into operation on December 31, 2021."

At the end of August 2018, the Canadian legal system directed this project, which was strategic for Trudo's government, on the grounds that it did not take into account enough the fear of indigenous groups in the region, especially its environmental impacts of marine fauna.

Ottawa announced in October that it would consult again with concerned Aboriginal communities, hoping to be able to quickly restart the work.

"Any delay in the construction or any increase in costs will have a downward impact on the value of the pipeline," warned PBO.

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