Canexus crude-by-rail project in Alberta sees costs soar by 40 per cent
CALGARY - Canexus Corp. (TSX:CUS) says the price tag of its oil-by-rail terminal expansion project in Bruderheim, Alta., has risen by 40 per cent over the previous cost estimate of $225 million.
The stock was down about 13 per cent to $6.56 at mid-day on the Toronto Stock Exchange.
CEO Gary Kubera says the company is disappointed with the revised estimate, but noted Canexus has "established a state-of-the-art facility."
The first phase of the expansion is in the process of starting up and the company expects to load 14 unit trains, or about 30,000 barrels per day of crude, during February.
The project is expected to be complete later this year.
Canexus expects to fund the incremental cost from its committed credit facilities.
Read more Business News
- Market welcomes liquor vendorsPenticton / S. Okanagan - 7:08 pm
- Crime and the newsVernon / N. Okanagan - 4:30 pm
- Tentative sale of Ric's GrillKelowna - 4:00 pm
- MV Okanagan gets hung upVernon / N. Okanagan - 3:00 pm
|QHR Technologies Inc||1.15||-0.02|
|Anavex Life Sciences||0.275||-0.005|
|Copper Mountain Mining||2.82||0.00|
|Sunrise Resources Ltd||0.05||+0.025|
|Mission Ready Services||0.19||+0.01|
The Big Picture Geopolitical tensions rattle markets The spectre of rising geopolitical tensions in Ukraine and Gaza cast a shadow over an otherwise positive week in the markets. News that a passenger...
The mainstream media are finally waking up to something unusual in British Columbia – a labour shortage. If the experience of Alberta is a guide to our own future, the highly skilled labour will...
Photo: ContributedI have the pleasure of witnessing people delegate tasks quite often. Sometimes with tremendous success and sometimes with disastrous consequences. I have chaired a lot of committees...