May 30 (Reuters) - The Canadian government has

guaranteed another C$1 billion ($731 million) in commercial

loans for the Trans Mountain pipeline expansion, taking the

total government-backed loan facility to C$19 billion, Trans

Mountain's quarterly earnings statement showed on Thursday.

The expansion project, which has so far cost C$34 billion,

nearly triples capacity to ship oil from Alberta to Canada's

Pacific coast to 890,000 barrels per day. It started commercial

operations on May 1 after years of delay.

Prime Minister Justin Trudeau's Liberal government bought

the pipeline from Kinder Morgan Inc ( KMI ) in 2018 to ensure

the project went ahead.

In 2022, as costs soared to roughly three times the

original budget, Ottawa said it would no longer finance the

expansion with public money. Since 2022, costs have jumped more

than another C$12 billion.

However, the government did provide a loan guarantee to

Trans Mountain Corp (TMC), which helped the crown corporation

enter into a credit agreement with a syndicate of commercial

lenders.

The government's backing reduces the risk to lenders and

would help TMC secure loans at lower interest rates.

The credit available to TMC from the syndicate increased to

C$19 billion on May 17 and the maturity date has been extended

to August 2026, TMC said in its first-quarter results statement.

At the end of 2023, TMC had total available credit of

C$18 billion that matured in March 2025 but said additional

funding was required, resulting in "material uncertainty that

cast substantial doubt" on TMC's ability to continue as a going

concern.

"The increase to the facility included a corresponding

increase to the guarantee provided from the Government of

Canada," TMC's statement said.

($1 = 1.3679 Canadian dollars)

(Reporting by Nia Williams in British Columbia; Editing by

Leslie Adler and Lincoln Feast.)