North American Oil & Gas Pipelines

MAY 2018

North American Oil & Gas Pipelines covers the news shaping the business of oil and gas pipeline construction and maintenance in North America, including pipeline installation methods, integrity management innovations and managerial strategies.

Issue link: http://digital.napipelines.com/i/976284

Contents of this Issue

Navigation

Page 7 of 43

8 North American Oil & Gas Pipelines | MAY 2 018 napipelines.com K inder Morgan Canada Ltd. (KML) Announced April 8 that suspending all non-essential activities and related spending on the Trans Mountain Expansion Project. In the announcement, KML leaders noted that under current circumstances, specifically including the continued actions in opposition to the project by the Province of British Colum- bia, it will not commit additional shareholder resources to the Project. From the time of the announce- ment through May, KML is meeting with key stakeholders in an effort to reach agreements by May 31 that may allow the pipeline to proceed. The focus in those consultations will be on two principles: clarity on the path forward, particularly with respect to the ability to construct through BC; and, adequate protec- tion of KML shareholders. "As KML has repeatedly stated, we will be judicious in our use of share- holder funds. In keeping with that commitment, we have determined that in the current environment, we will not put KML sharehold- ers at risk on the remaining proj- ect spend," said Steve Kean, KML chairman and CEO. The Project has the support of the Federal Govern- ment and the Provinces of Alberta and Saskatchewan but faces con- tinued active opposition from the government of British Columbia. "A company cannot resolve differ- ences between governments. While we have succeeded in all legal chal- lenges to date, a company cannot litigate its way to an in-service pipe- line amidst jurisdictional differenc- es between governments." "Today, KML is a very good mid- stream energy company, with lim- ited debt. The uncertainty as to whether we will be able to finish what we start leads us to the con- clusion that we should protect the value that KML has, rather than risking billions of dollars on an out- come that is outside of our control," Kean said. "To date, we have spent considerable resources bringing the project to this point and recognize the vital economic importance of the project to Canada. Therefore, in the coming weeks we will work with stakeholders on potential ways to continue advancing the project consistent with the two principles previously stated." KML had previously announced a "primarily permitting" strategy for the first half of 2018, focused on advancing the permitting process, rather than spending at full con- struction levels, until it obtained greater clarity on outstanding per- mits, approvals and judicial re- Kilometer zero of the existing 1,150-km (715-mile) Trans Mountain Pipeline, which begins at the Edmonton Terminal in Sherwood Park, Alberta, Canada. North America News Kinder Morgan Canada Limited Suspends Non-Essential Spending on Trans Mountain Expansion Project

Articles in this issue

Archives of this issue

view archives of North American Oil & Gas Pipelines - MAY 2018