Kinder Morgan halts work on TMX

Prime Minister Justin Trudeau left and finance minister Bill Morneau.
Canadian Press

Prime Minister Justin Trudeau left and finance minister Bill Morneau. Canadian Press

The pipeline builder, Kinder Morgan, announced Sunday it would suspend all non-essential work on the pipeline until Ottawa intervenes in the dispute between the governments of B.C. and Alberta.

Horgan has said they're leaving it up to the courts to rule whether B.C. has the power to stop the pipeline expansion.

Kinder Morgan will suspend its Trans Mountain pipeline expansion project entirely if the legal issues surrounding it can not be resolved by May 31, Chairman Steve Kean said, adding the company would not continue risking shareholder funds on the project unless the clouds over it clear.

The global market for oil, bitumen and natural gas is strong enough to justify Trans Mountain AND Energy East AND Keystone XL, and maybe even Northern Gateway.

15 analysts on average are expecting Kinder Morgan, Inc.to report earnings of $0.19 per share for the current quarter. "I don't want any threats, I don't want any ultimatums and I believe other governments should follow suit".

"This is devastating news for Canada's energy sector and Canadian workers", he said.

The Trans Mountain expansion to add 590,000 bpd to its current 300,000 bpd capacity is needed to show Canada is a good place to do business, said a spokeswoman for Calgary-based Canadian Natural Resources Ltd., which has a contract to ship 75,000 barrels per day on the new pipeline.

"We appreciate the support shown by the federal government and the provinces of Alberta and Saskatchewan, and are grateful for the strong endorsements among the majority of communities along the route and 43 Indigenous communities, as well as customers, contractors and unions", Kean continued. The British Columbia government went to court to overturn the permits granted by its predecessors, one of 16 lawsuits pending against the project. They also say that, by increasing the volume of oil shipped to the USA and Asian markets, the government of Prime Minister Justin Trudeau is ignoring its commitments to cut greenhouse gas emissions.


The executives said they had no plans to take back over Kinder Canada, which trades on the Toronto Stock Exchange under the ticker KML, or sell Kinder Morgan's stake in the unit. Profund Advisors LLC's holdings in Kinder Morgan were worth $3,966,000 as of its most recent SEC filing.

But, maybe, Horgan stands defiant, awaits the court ruling then washes his hands of the situation able to say, "We did what we could".

The company has said it will try to get agreements in order for the project to proceed and has set a deadline of May 31, adding that without agreement it "would hard to conceive of any scenario in which we would proceed with the project", according to a statement by CEO Steve kean.

"They seem to think that their provincial jurisdiction will supersede the federal which it clearly doesn't". This pipeline must be built. "The government is 100 per cent behind this pipeline".

"Alberta is prepared to do whatever it takes to get this pipeline built - including taking a public position in the pipeline", she said. However, Notley also said the pipeline is so important to the province it would consider becoming a co-owner. "As I've said before, there are different tools, all of which are focused on ensuring certainty so that the investors move forward with construction, and we are going to continue to advocate that all of those tools be used and, in fact, that the work that is underway be accelerated".

The project received a green light from the federal government in 2016 and Trudeau has argued it is possible to balance the interests of the economy and environment.

Kinder Morgan's Kean said his company welcomed those assurances on Monday's call and said there would be talks between the province and the company soon.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.