{"id":9246,"date":"2023-12-25T11:08:26","date_gmt":"2023-12-25T11:08:26","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=9246"},"modified":"2023-12-25T11:08:26","modified_gmt":"2023-12-25T11:08:26","slug":"canada-commits-to-backing-another-c2-billion-in-loans-for-trans-mountain-corp","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/9246\/","title":{"rendered":"Canada commits to backing another C$2 billion in loans for Trans Mountain Corp"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0The Canadian government is backing up to C$2 billion ($1.5 billion) in new commercial loans for Trans Mountain Corp (TMC), the crown corporation building an over-budget and long-delayed oil pipeline expansion to the Pacific coast.<\/p>\n

Information posted on Export Development Canada’s website on Friday showed a C$1.75 billion to C$2 billion loan guarantee for TMC was signed on Nov. 30. The government’s backing lowers the risk to lenders and would help TMC secure loans at lower interest rates.<\/p>\n

Before the latest guarantee, Ottawa had backed up to C$6 billion in loans for government-owned TMC in 2023.<\/p>\n

Last year, TMC secured C$10 billion in government-backed financing to help cover the expansion of a pipeline that will nearly triple the flow of crude from landlocked Alberta’s oil sands to the Pacific coast province of British Columbia.<\/p>\n

The expansion project is meant to unlock Asian markets for Canadian oil, which is mostly exported to the United States now.<\/p>\n

Prime Minister Justin Trudeau’s Liberal government bought the troubled project in 2018 to ensure its completion.<\/p>\n

The project has been hampered by regulatory obstacles, environmental opposition and construction delays, and costs have ballooned to C$30.9 billion, more than quadrupling the C$7.4 billion budgeted in 2017.<\/p>\n

In the latest setback, the Canada Energy Regulator said on Wednesday it denied a variance request for the project because TMC’s application did not adequately address concerns about pipeline integrity and environmental protection impacts.<\/p>\n

TMC has asked the regulator to reverse its variance decision on the grounds it could cause a “catastrophic” two-year delay and billions of dollars in losses.<\/p>\n

The expanded pipeline is meant to start shipping crude by the end of the first quarter of 2024. The risk of further delays is weighing on Canadian crude prices.<\/p>\n

($1 = 1.3272 Canadian dollars)<\/p>\n

Updated on