09/19/2014 09:45 EDT | Updated 06/16/2017 01:00 EDT

Keystone XL Costs To Nearly Double, TransCanada Warns

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.

Earlier on HuffPost: