Pipeline giant Kinder Morgan has won approval from the Canadian government for its Trans Mountain Expansion Project.
Houston-based Kinder Morgan said on Tuesday that the final federal approval “triggers a number of next steps.”
Trans Mountain will continue to seek all necessary permits with the start of construction now planned for September 2017.
An in-service date for the twinned pipeline is expected in late 2019.
“Other next steps will include a final cost estimate review with shippers committed to the project and a final investment decision by the Kinder Morgan’s board of directors,” Kinder Morgan said.
The original Trans Mountain pipeline was built in 1953 and stretches about 714 miles between Strathcona County, Alberta and Burnaby, British Columbia.
The expansion will create a twinned pipeline that will increase the nominal capacity of the system from 300,000 barrels per day to 890,000 barrels per day.
Kinder Morgan said that the $5 billion ($6.8 billion CAD) project expansion will result in direct and lasting benefits, including $46.7 billion in taxes and royalties for governments and more than 800,000 person years of employment over the life of the project.
The company added that the project will enable producers to capture an additional $73.5 billion in revenues.
“This decision follows many years of engagement and the presentation of the very best scientific, technical and economic information. We are excited to move forward and get this project built, for the benefit of our customers, communities and all Canadians,” Kinder Morgan Canada president Ian Anderson said.