Internal and External Financial Risk Factors Associated with the Construction of the Prince Rupert Gas Transmission (PRGT) Project

This infographic accompanies the Yellowhead Institute Special Report, Buried Burdens: The True Costs of Liquified Natural Gas (LNG) Ownership.

This graphic depicts some of the financial risk associated with construction of PRGT and Ksi Lisims. With unpredictable “external” factors such as the regulatory regime, geo-political uncertainty, economic uncertainty (e.g. inflation or market demand) and climate change related delays, the “internal” assumptions of project costs may not hold. Any of the above can lead to a change in construction schedule, an increase in materials, contractors and labour costs, or project management challenges generally. These external factors are increasingly likely, and so financial risk associated with construction is a near certainty.