Trans Mountain Corp (TMC) said it is in the process of securing external financing to fund the remaining cost of the project, which is now expected to start shipping oil in the first quarter of 2024.
The 590,000 barrel-per-day pipeline expansion will nearly triple the flow of barrels from Alberta's oil sands to Canada's Pacific coast, opening up access to Asian markets, but has been beset by regulatory delays, environmental opposition and hefty budget overruns.
Last February TMC increased the cost estimate to C$21.4 billion, up from C$12.6 billion in 2020 and C$7.4 billion in 2017. Following last year's jump, the Canadian government said it would halt any further public funding for the project.
TMC blamed the increase on a number of factors including high global inflation and supply chain issues, floods in British Columbia, unexpected major archaeological discoveries and challenging terrain.
The corporation also said the current cost estimate does not include reserves for "extraordinary risks" and could change again.
"As with all projects of this size, risks to the final costs and schedule will remain as work is completed through 2023," TMC said in a statement.
(Reporting by Nia Williams in British Columbia and Rahul Paswan in Bengaluru; Editing by Leslie Adler and Grant McCool)
By Nia Williams
