Export Development Canada, an agency of the Canadian government, confirmed that a loan guarantee between C$2.75-C$3 billion ($2.2 billion) has been granted to the Trans Mountain pipeline expansion project.
Bought from Kinder Morgan Inc by the Canadian government in 2018, this pipeline has been marred by controversy given its multiple cost overruns. The Trudeau administration has also taken a serious blow to support due to the impact on taxpayers that the project has had to date.
The project is aimed at providing Canada with a route into Asian oil markets, with the country’s oil exports mostly being directed to the United States.
Prior to this loan, the project was on the receiving end of a C$3 billion loan guarantee between late March and early May this year. It also received a C$10 billion loan guarantee in 2022 from Canada’s federal government.
This project is set to begin shipping oil during the first quarter of 2024.