The Supreme Court of Canada has dismissed an appeal to the Federal Court of Appeal’s decision in February 2020 to uphold approval of Trans Mountain oil pipeline expansion (TMX) project. Several indigenous groups were contesting the approval decision, considering they were insufficiently consulted by the government of Canada.
The cost of the TMX project increased by 70% from CAD7.4bn (US$5.5bn) to CAD12.6bn (US$9.3bn) due to regulatory and court delays, rising costs of steel, land, work and security, and accommodations for indigenous groups. A total of 13 committed shippers, comprising Suncor Energy and Canadian Natural Resources and refiner BP, will cover 22%-25% of the cost increase through higher tolls under 20-year long agreements. The state-owned project company Trans Mountain already spent CAD2.5bn (US$2.5bn) to acquire the project and to ensure its completion. The TMX project is expected to be commissioned in December 2022.
The project has aroused a fierce opposition. In September 2018, the project was rejected by the Canadian Federal court of appeal on grounds that the government had failed to consider the concerns of some First Nations. However, the Canadian National Energy Board (NEB) estimated in early 2019 that its completion was in the Canadian public interest and should be approved: in June 2019, the Federal government of Canada approved the construction of the project. Trans Mountain relaunched the construction of the pipeline in August 2019.