A new study assessing the costs and benefits of Kinder Morgan’s proposed Trans Mountain Expansion Project concludes that, if the project were to go through, a significant cost ranging between $4 and $22 billion would most likely be incurred on Canadians.
One of the reasons these numbers are so high is because there are more proposed oil transportation projects than are necessary to meet the needs of current oil markets according to the study.
The analysis, led by SFU professor Tom Gunton, examines two criteria requirements the National Energy Board assesses when looking at an application: whether the project is necessary and if it is in the public interest.
Kinder Morgan’s application argues that the expansion project is necessary to meet the growing needs of energy markets. However, separate forecasts conducted by Kinder Morgan show inconsistent results. In one report, SFU’s same research team found that Kinder Morgan had in fact forecasted a surplus of pipeline capacity.
A final decision on the Trans Mountain Expansion project is expected in January.