03:28 PM EDT, 03/14/2024 (MT Newswires) -- A group of oil shippers on the nearly complete Trans Mountain Expansion Project (TMX) is asking the Canadian Energy Regulator to compel the federally owned pipeline company to provide a detailed explanation for massive cost overruns for the project, Canadian Press reported on Thursday.

The group, which includes Canadian Natural Resources ( CNQ ) , Suncor Energy ( SU ) and the Canadian units of PetroChina (PTR) and Marathon Petroleum ( MPC ) want the regulator to order the company to disclose how costs rose from C$7.4 billion in 2017 to around C$34 billion at last estimate. The expanded line is expected to be in service before the end of June.

Rising construction costs will be reflected in tolls charged to ship on the line, which will carry 890,000 barrels per day of crude oil from near Edmonton, Alberta, to the Port of Vancouver. The companies say the higher costs must be shown to be reasonable and necessary to justify tolls twice as high as a 2017 estimate, the news agency said.

The regulator has not yet decided whether to approve the shippers' request.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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