BUSINESS

Keystone XL Costs To Nearly Double, TransCanada Warns

09/19/2014 09:45 EDT | Updated 06/16/2017 01:00 EDT
CP
CALGARY - TransCanada Corp. says costs for its long-delayed Keystone XL pipeline will likely balloon to as much as US$10 billion, up from US$5.4 billion.

CEO Russ Girling told the Wall Street Journal that the price tag could rise to a "number that gets you into the high single digits to a 10 number" as the project remains in limbo.

Company spokesman Shawn Howard has confirmed those remarks, adding the higher costs will be passed on to refiners and consumers in the end.

TransCanada (TSX:TRP) is marking what it calls an "unfortunate milestone" for Keystone XL — six years precisely since it applied for a U.S. permit to build the pipeline.

Meanwhile, Reuters reported this week that U.S. hedge funds are eyeing a restructuring of TransCanada.

TransCanada, commenting on "significant trading activity" in its shares, says it's expected to generate significant cash flow, earnings and dividend growth in its current form.

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