Northland Power Inc (Ontario) T.NPI

What's up with Trans Mountain Pipeline? (off topic)

[Dibah420]

Given the commodity boom and the sharp spike in pipeline share prices wouldn't this be an opportune time to sell it back to the private sector and recoup some of the billions?  That's one quick way to cut the deficit!
The original pipeline was built for a paltry $93 million  ( i.e. MILLION)  and in a span of 20 months!
Amazing.

Last I looked the twin line under construction is eons delayed and BILLIONS over budget!

[BayWall]

The cost is now $21.4 billion,. Original estimate was $12.6 billion. Floods and pandemic to blame. The Federal Gov't says it wil not put more money into the project. Like giant dams, Site C original cost $7.9 billion, now $16 billion. Muskrat Falls, original cost $6.2 billion now $12.7 billion. First Nations affected by the Trans Mountain project have a chance to buy 100%. But what will be

[CatoCan]

To be fair the original line was built nearly 70 years ago, everything was a lot cheaper back then. Also, this new line is bigger. In terms of why the goverment hasn't offloaded it yet, i am pretty sure they are trying to make sure there is significant indigenous ownership involved. It would take time to arrange that.

[BayWall]

The pipe shipped out of the local steel mill is made with scrap metal and uses electric arc furnaces. Old cars, scrap metal/metal shavings comes in by train/truck from Canada and the US.   They have a research lab here and elsewhere. Different things are done to make the pipe stronger, especially in cold weather. Adding molybdenum and the way the spiral pipe is

[BayWall]

Here is an article from March. Taxpayers will still take a loss. Returns will be also be lower as can't pass on most capital cost overruns.--Project Reconciliation still aiming to buy Trans Mountain pipeline (aptnnews.ca)

[BayWall]

$10 billion lkoan guarantee. Finance Canada confirmed Trans Mountain has "now secured up to $10 billion in third-party financing with a group of Canadian financial institutions." The statement didn't say which institutions are funding the pipeline's completion, but it does say Trans Mountain will pay a fee to the government for the loan guarantee.

[BayWall]

Some First Natuions want to stop Trans Mountain pipeline, while others want to buy it. Loan guarantees for First Nations by Federal Gov't if the pipeline is purchased in the near future.