A new report shows that the price of the Columbia gas pipeline from North Dakota to the Midwest, which the State Department and some states have proposed to build, is almost as high as the price it would cost to build the pipeline from Pennsylvania to New York City.
The new price is $7.4 billion, a 25% higher price than the pipeline was originally estimated to cost, according to a report by a research firm, Greenblatt & Co. Greenblatt’s study found that a full section of the pipeline would cost $6.8 billion to build and that the $7 billion price tag would rise by $2.4 trillion over 10 years.
This means the new price of construction for the $70 billion project is almost $100 billion more than what the State department and other states have said it will cost to construct it.
But the report says that it is likely that this price increase would not affect the overall cost of the project, since the State and other contractors would still be able to raise the price with new contracts.
“This is a very good example of how quickly the pipeline industry has grown and its ability to negotiate with suppliers, and the costs that go along with that,” said Greenblat’s vice president, Jonathan Greenblatts, in a statement.
In the same way that the cost of a truck-mounted crane will rise as demand increases, the State will have to increase its cost of building the pipeline to meet the increased costs.
With the State’s proposed $6 billion price, the company expects the cost to rise by an additional $4 billion over 10 or 15 years.
But the pipeline is far from complete, with new construction still needed.
The State Department said last month that it had not finalized the environmental impact statements for the pipeline, which would be built with federal money.
And the State said in a July filing that it would not finalize the project’s environmental impact statement until it completed construction of a new pipeline from Louisiana to Illinois.
Since the State has not finished construction of the new pipeline, it is not clear how the new costs will be calculated.
Greenblatts said the report’s findings were significant because they were the first of their kind.
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