Actually, I'm more shocked by the headline. Again, clickbait.
From oilprice:
Canada’s government negotiated a price to buy the controversial Trans Mountain Pipeline at the higher end of estimates, while further delays in the expansion project would reduce the final price that the federal government can obtain when it re-sells it, Canada’s Parliamentary Budget Officer (PBO) said in a report on Thursday.
The Trans Mountain expansion has become one of the most controversial pipeline projects in North America as it pitted two provinces—Alberta and British Columbia—against each other. Alberta’s heavy oil producers need more pipeline capacity as their production grows, but pipeline capacity has stayed the same. British Columbia, however, is against any new oil pipelines. The fierce opposition in British Columbia has forced Kinder Morgan to reconsider its commitment to expand the Trans Mountain pipeline, and to sell the project to the Canadian government in August 2018.
Canada bought Trans Mountain Pipeline, the Trans Mountain Expansion Project, and related assets for US$3.35 billion, while PBO estimates that the TMP and TMEP have a value of between US$2.74 billion and US$3.5 billion, assuming that the pipeline is built on time and on budget. PBO’s valuation could be understated, if all related assets are included.Are you kidding! That's the headline. Here is the story condensed to two lines:
- watchdog: pipeline valued at $2.74 billion to $3.5 billion
- government paid: $3.35 billion
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