Trans Mountain Pipeline – Financial and Economic Considerations – Update

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Communications

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• The Government’s decision to acquire, expand, operate, and eventually divest of the Trans Mountain Pipeline System continues to be profitable. However, the profitability of the assets is highly contingent on the climate policy stance of the federal government and on the future utilization rate of the pipeline.

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News Release

{"id":10,"created_at":"2020-12-03T14:30:01-05:00","updated_at":"2021-02-25T15:07:04-05:00","slug":"COM-2021-010--trans-mountain-pipeline-still-profitable-for-now-says-pbo--dpb-le-pipeline-trans-mountain-est-encore-profitable-pour-linstant","title_en":"Trans Mountain Pipeline still profitable \u2013 for now, says PBO","title_fr":"DPB : Le pipeline Trans Mountain est encore profitable, pour l\u2019instant","body_en":"The Parliamentary Budget Officer (PBO) today released an updated financial and economic analysis of the federal government\u2019s $4.4 billion purchase of the Trans Mountain Pipeline (TMP), Trans Mountain Expansion Project (TMEP), and related assets. \n\nThe report Trans Mountain Pipeline \u2013 Financial and Economic Considerations \u2013 Update provides the PBO\u2019s latest financial valuation of the purchased assets, based on an analysis of new data and updated assumptions for the pipeline utilization, the discount rate and the long-term service and tolling framework.\n\nThe PBO estimates the net present value of the Trans Mountain assets is $0.6 billion. This updated valuation is based on a construction cost of $12.6 billion and an in-service date of December 2022 for TMEP, as well as a continuation of the federal government\u2019s current climate policy framework. \n\n\u201cThe Government\u2019s decision to acquire, expand, operate, and eventually divest of the Trans Mountain Pipeline System continues to be profitable,\u201d said Yves Giroux, PBO. \u201cHowever, the profitability of the assets is highly contingent on the climate policy stance of the federal government and on the future utilization rate of the pipeline.\u201d\n\nThe PBO also estimated the economic impact of construction activities for the TMEP. The peak annual impact on real gross domestic product is 0.18 per cent in 2021.","body_fr":"Le directeur parlementaire du budget (DPB) a publi\u00e9 aujourd\u2019hui une mise \u00e0 jour de son analyse financi\u00e8re et \u00e9conomique de l\u2019achat par le gouvernement f\u00e9d\u00e9ral, pour 4,4 milliards de dollars, du pipeline Trans Mountain (TMP), du projet d\u2019agrandissements du r\u00e9seau de Trans Mountain (PARTM) et des actifs connexes. \n\nLe rapport Achat du pipeline Trans Mountain par le Canada \u2013 Consid\u00e9rations financi\u00e8res et \u00e9conomiques \u2013 Mise \u00e0 jour pr\u00e9sente la derni\u00e8re \u00e9valuation financi\u00e8re du DPB des actifs achet\u00e9s. Cette \u00e9valuation est fond\u00e9e sur une analyse des nouvelles donn\u00e9es et des hypoth\u00e8ses actualis\u00e9es concernant l\u2019utilisation du pipeline, le taux d\u2019escompte pr\u00e9sum\u00e9 et le cadre applicable aux services et aux tarifs \u00e0 long terme.\n\nLe DPB estime que la valeur actuelle nette des actifs du projet Trans Mountain est de 0,6 milliard de dollars. Cette nouvelle \u00e9valuation prend en compte un co\u00fbt de construction de 12,6 milliards de dollars et une date de mise en service de d\u00e9cembre 2022 du PARTM. On suppose aussi que les politiques climatiques du gouvernement f\u00e9d\u00e9ral resteront les m\u00eames. \n\n\u00ab La d\u00e9cision prise par le gouvernement du Canada d\u2019acqu\u00e9rir, d\u2019agrandir, d\u2019exploiter puis d\u2019un jour c\u00e9der les actifs du r\u00e9seau de pipelines Trans Mountain demeure profitable, a d\u00e9clar\u00e9 le DPB Yves Giroux. Toutefois, la profitabilit\u00e9 des actifs d\u00e9pend fortement de la position du gouvernement f\u00e9d\u00e9ral \u00e0 l\u2019\u00e9gard du climat et du taux d\u2019utilisation de la capacit\u00e9 du pipeline. \u00bb\n\nLe DPB a \u00e9galement \u00e9valu\u00e9 les effets \u00e9conomiques des activit\u00e9s de construction du PARTM. Selon le DPB, l\u2019incidence annuelle maximale de la construction du PARTM sur le PIB r\u00e9el sera de 0,18 % en 2021.","release_date":"2020-12-08T09:00:00-05:00","is_published":"2021-02-25T15:07:04-05:00","internal_id":"COM-2021-010","permalinks":{"en":{"website":"https:\/\/www.pbo-dpb.ca\/en\/blog\/news-releases--communiques-de-presse\/COM-2021-010--trans-mountain-pipeline-still-profitable-for-now-says-pbo--dpb-le-pipeline-trans-mountain-est-encore-profitable-pour-linstant"},"fr":{"website":"https:\/\/www.pbo-dpb.ca\/fr\/blog\/news-releases--communiques-de-presse\/COM-2021-010--trans-mountain-pipeline-still-profitable-for-now-says-pbo--dpb-le-pipeline-trans-mountain-est-encore-profitable-pour-linstant"}},"pivot":{"publication_id":57,"news_release_id":10}}