Insurance company for Trans-mountain pipeline said it would not renew its policy with the company when it expires in August.
Argo Group International Holdings Ltd., an international underwriter based in Bermuda, said the project no longer matched the company’s risk appetite.
“We are currently insuring the Trans Mountain pipeline but have no intention of extending it when the policy expires in August 2021,” said spokesman David Snowden.
“This type of project does not currently fit Argo’s risk appetite.”
The Argo Group’s decision came after operator Trans Mountain received regulatory approval to protect the identity of its insurers.
Trans Mountain argued that identifying its insurers could make it difficult to obtain insurance at a reasonable cost and hurt its competitive position.
Insurers such as Zurich Insurance Group AG also ditched Trans Mountain as a potential client amid pressure from environmental and indigenous groups opposing the construction of the state pipeline.
Environmental groups such as the Sunrise Project are petitioning insurance companies to drop Trans Mountain’s coverage as a means to disrupt its operations.
Trans Mountain said it currently has all the required insurance coverage.
“Trans Mountain is committed to providing Energy Canada with full information about our financial resources and to ensure that Canadians know we are adequately insured,” a company spokeswoman said.
Construction under the pipeline expansion project is ongoing and the company said the project will be completed by the end of 2022.
The federal government acquired the existing line in 2018 from Texas-based Kinder Morgan for $ 4.5 billion, when the company threatened to leave due to opposition from the British Columbia government, environmentalists and some indigenous groups.
The expansion will more than double the pipeline’s capacity from about 300,000 barrels per day to 890,000 barrels per day.
See below: some of the Global News videos on the Trans Mountain pipeline.
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