Thursday , June 27 2019
Home / senegal / Canada: Government buys oil at a high price, says official report

Canada: Government buys oil at a high price, says official report

Canadian government Justin Trudeau paid a high-priced nationalization last year for a $ 4.4 billion controversial Trans Mountain pipeline (€ 2.9 billion), according to the Audit Agency's public accounts report released on Thursday.

Faced with bottlenecks in Canadian oil pipelines and uncertainty in the oil industry, in August 2018, Ottawa bought the American Kinder Morgan Oil Pipeline that linked the Alberta oil fields to the Pacific Ocean coast, the Rocky Mountains.

1200 km long and currently saturated, there must be a triple capacity of 890,000 barrels of oil per day, according to the expansion project. However, work is slowly starting due to a judicial decision and a strong opposition from the West Canadian population.

In its report, "The Canadian Trans Mountain Pipeline: Financial and Economic Thoughts," the Office of the Parliamentary Budgetary Officer (PBO, an independent civil servant providing Parliament with a permanent audit of public accounts) estimates that the value of the pipeline is between 3.6 billion and 4.6 billion dollars ".

"The Government of Canada paid $ 4.4 billion, which is our highest estimate of pipeline size," said Yves Giroux, PBO.

Expansion was estimated at $ 7.4 billion in 2016, with the exception of the purchase of an existing gas pipeline, but the PBO estimates that the new pipeline "would cost $ 9.3 billion to build and enter service on 31 December 2021".

At the end of August 2018, the Canadian Judicial System referred to this project, which was strategic for Trudeau's strategy, on the grounds that it did not sufficiently address the concerns of indigenous groups in the region, its impact on the environment, especially marine fauna.

Ottawa announced in October that it would re-consult the relevant indigenous communities and hopes to be able to work quickly.

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

In the news

Source link