A huge cost increase to Trans Mountain’s pipeline expansion project has been announced by the Crown corporation.

In a conference call with media this morning, Trans Mountain president Ian Anderson says the project is now expected to come in at $12.6 billion, up from the previous estimate of $7.4 billion.

Anderson says the Crown corporation has spent $2.4 billion to date, since 2012, and expects to spend $8.4 billion more, as well as another $1.7 billion dollars in additional costs.

“The cost increases really come about from two primary drivers, one being the starting and stopping of construction the cost of delays, the carrying costs, legal processes and the other being the many project changes, enhancements and market conditions we faced,” Anderson says.

“As we move along, it’s gets costlier and costlier, time is money as we know,” he adds about the project and the “complex task” of scheduling. He also says construction costs and labor costs have risen substantially.

“The cost of the project is shared by Trans Mountain and our shippers, and they will tell you this is a project they still very much want,” he adds, saying the pipeline will make money “every day… once the taps are turned on.”

Anderson says the pipeline is expected to be finished in just under three years, late in 2022. He says 3,000 people are working on construction right now in Burnaby and in Alberta, and at peak construction next year he says 5,500 workers will be on the line, including 2,800 workers in B.C. and 2,700 in Alberta.

More to come.