Quote:
Originally Posted by Fighting Banana Slug
This is not close to being accurate.
|
It depends on the contract and pipe / situation but yes, it is.
You think the producers are eating the overshoot on TMX? Maybe after the term of their fixed rate deals are done they will when the operator goes to recoup losses as much as possible, but until then there's going to be caps on cost escalation 100% within those contracts. And usually not too divergent from the fixed rate tolls and take or pay they agreed to. The contracts get mostly settled before the build for about 70-90% of the investment required. FID goes and then some companies still contract after the fact (after waiting to see if it will, which is also not helpful to the process for the midstreamer, actually).