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.