Canada Energy Regulator explains why it approved Trans Mountain variance

The Canada Energy Regulator has issued its reasons for approving Trans Mountain Corp.'s revised pipeline variance application earlier this month.

In a press release, the regulator says it found that approving the application with four conditions is in the public interest, based on new inspection commitments and demonstration of quality management processes from Trans Mountain.

The Crown corporation has run into difficulties drilling through hard rock in B.C. as it races against the clock to complete the pipeline project, which is expected to almost triple the capacity of Canada's only oil pipeline to the West Coast.

The regulator originally denied Trans Mountain's request to use a different size of pipe for the location in question due to concerns around pipeline quality and integrity.

Trans Mountain asked the regulator to reconsider, saying in December that the project could see delays of up to two years if it couldn't alter its construction plans, and the regulator approved the request mid-January, with conditions.

On Monday, Trans Mountain announced it had run into more construction challenges in B.C., pushing its expected in-service date back from the first quarter to the second quarter of this year.

This report by The Canadian Press was first published Jan. 31, 2024.