$ 320 million in grants to Trans Mountain in the first half of 2019, according to a report
VANCOUVER – A Canadian institute analyzing Canada’s hydrocarbon industry says in a report released on Tuesday that in the first half of the current year, the Trans Mountain Pipeline has received $ 320 million in direct and indirect subsidies from Governments of Canada and Alberta.
The report from the Institute for Energy Economics and Financial Analysis recalls that the Liberal government re-elected in the October 21 federal election promised to spend $ 500 million annually on pipeline revenues for clean energy projects.
But Trans Mountain Corporation, the company that operates the pipeline and is working to expand it, has lost $ 69 million in the first six months of 2019 and will need more, according to the authors.
The Institute’s report calls into question the economic feasibility of the enlargement project. One of the authors, Tom Sanzillo, acknowledges the government’s funding of the pipeline, but urges it to be transparent with taxpayers.
The Liberal government bought the existing pipeline for $ 4.5 billion in 2018 to overcome the BC government’s opposition to the expansion. Pipeline upgrades, which connect Alberta tar sands sites to Vancouver area port facilities, are expected to be completed by mid-2022.