The federal government has approved a new loan of approximately $10 billion for the "Trans Mountain" pipeline project.

The guarantee was approved by the cabinet on April 29 through Canada Account at the "Crown Corporation Export Development Canada," which provides loan guarantee support for Canadian companies.

The EDC website said that the Canada Account is used to support projects that serve Canada's national interest but are exposed to significant risks, including the size of the project, borrower risk, or market risks.

The Trans Mountain pipeline is the only oil pipeline in Canada from Alberta to the west coast. The current construction project will primarily twin the existing pipeline, increasing daily capacity to 890,000 barrels.

In February, Trans Mountain Corp announced that the expected project price had risen to $21.4 billion, up from previous estimates of $12.6 billion, due to recently disclosed budget overruns.

Finance Minister Chrystia Freeland said there would be no additional public funding for the pipeline. She said Trans Mountain would need to secure third-party financing to complete the project, either through banks or public debt markets.