Home Futures & Commodities Canada’s Trans Mountain told to halt pipeline operations due to environmental non-compliance, says Reuters.

Canada’s Trans Mountain told to halt pipeline operations due to environmental non-compliance, says Reuters.

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Canada’s Trans Mountain told to halt pipeline operations due to environmental non-compliance, says Reuters.

Canada’s Trans Mountain Pipeline Ordered to Halt Work Over Environmental Non-Compliance

Regulatory Order Halts Trans Mountain Pipeline Expansion Project

The Canada Energy Regulator (CER) has issued an order to the Trans Mountain oil pipeline expansion project to cease work in a wetland area near Abbotsford, British Columbia. The order comes after inspectors discovered multiple instances of environmental and safety non-compliance. This latest setback adds to the project’s long history of regulatory delays, environmental opposition, and significant cost overruns.

Non-Compliances Include Environmental and Safety Issues

The CER cited various non-compliances, including inadequate fencing to protect amphibians and unauthorized vegetation clearing. These issues pose risks to the surrounding ecosystem and violate regulatory requirements. As a result, the CER has instructed Trans Mountain to halt work in the wetland area until the non-compliances are rectified. The company must also investigate the root causes of these issues and conduct a safety inspection to ensure the site is safe for work.

Trans Mountain’s Response

Trans Mountain Corp, the Canadian government-owned corporation responsible for the expansion project, has acknowledged the order’s scope, which applies to a specific work area measuring approximately 800 meters. The company has expressed its commitment to addressing all non-compliances promptly and preventing their recurrence. Trans Mountain intends to have the restrictions lifted as soon as possible, in accordance with the law.

Nearing Completion Despite Challenges

Despite the ongoing challenges, Trans Mountain reports that the oil pipeline expansion project is over 95% complete. Once finished, the project will significantly increase the pipeline’s capacity, nearly tripling it from Alberta to Canada’s Pacific Coast. This expansion will facilitate access to Asian markets and the US West Coast for Canadian crude oil.

Government Intervention and Escalating Costs

Prime Minister Justin Trudeau’s Liberal government acquired the pipeline in 2018 to ensure the expansion project’s progression. However, the project’s costs have skyrocketed since then, reaching CAD 30.9 billion (USD 22.49 billion). Delays in construction have contributed to this substantial cost increase.

Past Environmental Concerns

This is not the first time the Trans Mountain project has faced work stoppages due to environmental concerns. In 2021, the pipeline was ordered to halt work for four months to protect hummingbird nests along a one-kilometer section of its route.

(This story has been refiled to change picture)