Kinder Morgan gives pipeline decision a final OK

Company announces its final investment decision on the expansion of the Trans Mountain pipeline

VANCOUVER – Kinder Morgan says it will proceed with the $7.4-billion Trans Mountain pipeline expansion as long as it secures satisfactory financing for the project through its initial public offering.

The Texas-based company, in conjunction with its indirect subsidiary Kinder Morgan Canada, announced Thursday its final investment decision on the project, which is conditional on the successful completion of the IPO.

The company has offered 102.9 million shares at a price of $17 per share in an effort to raise $1.75 billion. The public offering is set to close May 31.

The IPO would be one of the biggest ever on the Toronto Stock Exchange and Kinder Morgan spokesman Dave Conover says the company is confident it will be a success.

Conover said the timing of the public offering wasn’t intended to coincide with British Columbia’s provincial election which has created political uncertainty. The process is proceeding because the project’s financing contingency period, as specified in shipper agreements, concludes at the end of May.

B.C.’s election has left the anti-pipeline Greens holding the balance of power in a minority situation in the legislature, raising concerns they will use their influence to persuade whichever party forms the government to take measures to block the project. The Liberals and NDP are in negotiations with the Greens.

“We’re confident that we can work with whether it’s a Clark minority government or a new coalition government,” Conover said. “I’m sure that we’ll be talking to all three of the parties as the months unfold.”

Green Leader Andrew Weaver has previously said the party believes it has a responsibility to stop the federally approved project, which would triple the shipment capacity of Alberta oil products to B.C.’s coast.

Alberta’s securities regulator is also reviewing Kinder Morgan’s regulatory filings after a request from Greenpeace, which said it believes the documents overestimate growth in Asian oil demand and don’t go far enough in disclosing risks related to climate change.

The project does have the support of Alberta Premier Rachel Notley, who has said opponents of the pipeline expansion have no power to stop it nor should they hold hostage the economy of another province.

Despite the opposition, Conover said the federal government, which has the authority to approve the project, already provided the necessary go-ahead last year.

B.C.’s Liberal government also negotiated a 20-year revenue-sharing agreement worth about $1 billion with Kinder Morgan before the election.

Conover said a new provincial government would have to take “pretty significant actions to repeal or override” the existing agreement.

Instead, he said he’s confident the company can address any concerns about the construction, safety or environmental implications of the project a new government may have within the existing framework.

Kinder Morgan says it’s expecting to begin construction for the project in September, with a completion date set for December 2019.

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Pre-registration required for the drive-in 2020 flu immunization clinics at Chilliwack Heritage Park on Nov. 3 and 4, and Nov. 9 and 10. (Chilliwack Division of Family Practice)
First ever drive-in flu shot clinics coming to Chilliwack next week

Roll up your sleeve, drive inside the barn at Heritage Park, and park for a few minutes to get shot

B.C. taxpayers could be on the hook for upwards of $27 million in total payouts for MLA pensions. (file)
Pensions are adding up for defeated, retiring MLAs: Taxpayers’ group

Martin and Throness would get $28,000 per year, lifetime pensions estimated ~$700K

Halloween enhanced image of a pumpkin patch to get you going. (Ryan Dyck Photography)
Halloween displays around Chilliwack are always a treat

Here is a list of addresses where some of the more creative Halloween displays can be viewed

Google Maps screenshot taken at 7:56 a.m., Oct. 29.
TRAFFIC: Westbound Highway 1 crash between Chilliwack and Abbotsford

Left lane is blocked, traffic backed up to No. 3 Road

A woman wears a face mask and plastic gloves while browsing books as a sticker on the floor indicates a one-way direction of travel between shelves of books at the Vancouver Public Library’s central branch, after it and four other branches reopened with limited services, in Vancouver, on Tuesday, July 14, 2020. (THE CANADIAN PRESS/Darryl Dyck)
B.C. reports 234 new COVID cases, 1 death of senior who had attended small birthday party

Roughly 5,700 people are isolating due to being exposed to a confirmed case

Provincial Health Officer Dr. Bonnie Henry speaks Thursday (Oct. 29) during a news conference held at Fraser Health office, in video posted to Facebook. (Photo: Government of British Columbai/Facebook)
COVID-19 ‘disproportionately’ affecting Fraser Health: Henry

Health region has about 75 per cent of B.C.’s active cases

A study by SlotsOnlineCanada notes there is at least 88 hours of top-rated horror movies for Canadians to consume this Halloween. (Unsplash)
Spooks and Chill study reveals Canada’s favourite horror flicks

88 hours of top-rated horror movies can fill COVID-19 Halloween

Burnaby RCMP responded to a dine-and-dash suspect who fell through a ceiling in March 2020. (RCMP handout)
VIDEO: Suspected dine-and-dasher falls through ceiling of Burnaby restaurant

A woman believed to be dashing on her restaurant bill fell through the kitchen ceiling

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

A can of Canada Dry Ginger Ale is shown in Toronto on Thursday Oct. 29, 2020. The maker of Canada Dry Ginger Ale has agreed to pay over $200,000 to settle a class-action lawsuit launched by a B.C. man who alleged he was misled by marketing suggesting the soda had medicinal benefits. THE CANADIAN PRESS/Joseph O’Connal
B.C. man’s lawsuit over marketing of Canada Dry ginger ale settled for $200K

Soda’s maker, Canada Dry Mott’s Inc., denied the allegations and any liability

Vancouver Island-based Wilson’s Transportation has expanded to fill some of the routes left unserviced by Greyhound as of Nov. 1, 2018. (Black Press files)
B.C. bus companies say they need help to survive COVID-19

Like airlines, motor coaches have lost most of their revenue

A deer was spotted in October 2020 in Prince Rupert, B.C., with a bright pink yoga ball stuck in its antlers. (Kayla Vickers/Chronicles Of Hammy The Deer Official Page)
Hammy 2.0? Prince Rupert deer spotted with bright pink yoga ball stuck in antlers

The BC Conservation Officer Service is aware of the deer roaming around the city

Most Read