The Government of Canada has approved the expansion of the Trans Mountain oil pipeline, which will provide additional revenues to fund a clean energy future.
The decision comes nearly a year after a federal court rejected the government’s approval for the expansion citing environmental concerns and its impact on the indigenous communities.
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The expansion project will bolster the capacity of the Trans Mountain pipeline, which connects Alberta’s oil sands to the Pacific coast of British Columbia, enabling it to transport around 890,000bpd.
According to some estimates, the project will cost $6.95bn.
If the project is carried out, it will significantly reduce pressure on other existing pipelines as well as help to diversify exports, reported Reuters.
In a statement, Canadian Prime Minister Justin Trudeau said that all revenues earned through the project will be invested in Canada’s clean energy transition.
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By GlobalDataTrudeau said: “The Trans Mountain Expansion (TMX) project is a significant investment in Canadians and in Canada’s future that will create thousands of good, middle-class jobs, maintain the highest environmental standards, and fund the clean energy solutions that Canada needs to stay competitive on the global stage.”
The statement added that the decision was taken after addressing the concerns raised by the Federal Court of Appeal’s ruling in August last year.
Following the setback last year, the government also carried out consultations with indigenous groups and communities, as highlighted in the court ruling.
Construction works are expected to begin this year if the expansion does not face additional legal challenges. TMX also requires securing multiple approvals from the province of British Colombia, which opposes the project.
The expanded Trans Mountain oil pipeline will be operational in early 2022.
