TransCanada says Keystone XL cost could reach $10 billion

TransCanada says Keystone XL cost could reach $10 billion

CEO tells Wall Street Journal price tag could rise to a “number that gets you into the high single digits to a 10 number” as project remains in limbo

by
Sue Ogrocki/AP

Sue Ogrocki/AP

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.