• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 52 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days Does Toyota Know Something That We Don’t?
  • 7 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 days America should go after China but it should be done in a wise way.
  • 7 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 5 days China is using Chinese Names of Cities on their Border with Russia.
  • 7 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 5 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 6 days Putin and Xi Bet on the Global South
  • 7 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 7 days United States LNG Exports Reach Third Place
  • 7 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Will Kinder Morgan Abandon The Trans Mountain Pipeline?

Kinder Morgan does not seem very upbeat about the prospects of its US$5.9-billion Trans Mountain pipeline project despite a pledge by the Alberta and federal Canadian government to support the pipeline expansion financially.

In its Q1 2018 report conference call yesterday, CEO Steven Kean said that “it’s become clear this particular investment may be untenable for a private party to undertake. The events of the last 10 days have confirmed those views.”

Indeed, the last couple of weeks have been very eventful, with Alberta’s government threatening British Columbia with legislation that could see exports of Albertan crude and fuels to the neighboring province reduced, and B.C. threatening to go to court if this legislation is approved.

Prime Minister Trudeau meanwhile has offered financial support to Kinder Morgan to make sure the project goes ahead. For now, the PM seems wary of doing anything else in a bid to avoid alienating B.C. voters ahead of next year’s federal elections. However, it is becoming increasingly clear that Ottawa cannot have its cake and eat it, too. If it really wants Trans Mountain expanded it will have to risk alienating B.C.’s environmentalists. If the risk is too high, then it would eventually have to go back on its own decision from 2016 to approve the pipeline project.

He federal government is now looking for legal ways to assert its jurisdiction over the pipeline that will allow it to trump whatever argument against it B.C. can come up with.

Related: Canada’s Oil Patch To Turn Profitable In 2018

Kinder Morgan is not making things easier for Ottawa, either. For the company, the problem is not really financial. Even with all the financial help the federal government can provide, the pipeline maker is uncertain it will go through with the project. The problem: B.C. political opposition.

Asked about whether funding from the government would ensure the Trans Mountain expansion, Kean said “They’re really two separate things. Most of the investment is in British Columbia, where the government is in opposition to the project ... That is an issue that, in our view, needs to be resolved.”

Alberta, by the way, is ready to buy the project and take it off Kinder Morgan’s hands. This option may have sounded far-fetched a week ago but now it is beginning to look increasingly like a legitimate solution to the problem the pipeline maker is facing.

ADVERTISEMENT

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Plan B on April 19 2018 said:
    Keystone XL?

    How about the Oil Industry and API halting their War On American Farmers and corn ethanol?

    Fighting E15 Guarantees one thing,

    No Keystone XL.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News