Trans Mountain variance request denied by regulator over pipeline safety concerns

Regulator denied Trans Mountain variance request due to pipeline safety concerns

“The Canada Energy Regulator Refuses Trans Mountain Corp’s Pipeline Variance Over Safety Concerns

The Canada Energy Regulator has recently announced its refusal to grant a pipeline variance request by Trans Mountain Corp, citing safety concerns as the primary reason for the denial. The refusal comes as the Crown corporation sought permission to use a different diameter wall thickness and coating for a 2.3-kilometre stretch of the Trans Mountain pipeline expansion project under construction in B.C.

Safety Concerns Over Materials Procured

According to the regulator, it has serious concerns over the quality of materials Trans Mountain has procured for the variance. They doubt that the company can guarantee an appropriate level of safety and pipeline integrity with the proposed changes, which led to its decision to deny the request. The regulator expressed that using pipes or components with mechanical properties not meeting specifications could result in pipe failure or cause impacts on people and the environment.

Construction Hurdles and Financial Implications

Trans Mountain Corp. faces numerous hurdles as it attempts to complete its massive pipeline construction project. The pipeline expansion is crucial for Canada’s energy industry, as it is expected to improve access to export markets and reduce the Western Canada Select differential. However, the project has faced construction difficulties, leading to the request for a pipeline variance. Trans Mountain Corp. claims that not being granted a variance could result in a possible two-year delay and significant financial losses.

Remainder of Second Variance Request

After the denial of the variance request, Trans Mountain asked the regulator to reconsider, highlighting the significant construction challenges it faces. The company warned of potential catastrophic delays that could result in millions of dollars in lost revenues for each month of delay. While the regulator has not yet responded to this second variance request, Trans Mountain Corp. has emphasized the urgency of a decision to prevent unnecessary delays.

Thought-Provoking Conclusion

The Trans Mountain pipeline expansion project remains a point of contention, with safety concerns being a crucial factor in decisions regarding construction variances. While the completion of the project is eagerly awaited by Canada’s energy industry, the concerns raised by the Canada Energy Regulator raise important questions about the trade-off between meeting construction deadlines and ensuring the safety and integrity of pipeline projects. With the financial implications of potential delays in mind, it is essential to consider the steps necessary to address construction challenges without compromising safety and environmental impact.”



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