It’s full steam ahead for the Trans Mountain expansion project.
Kinder Morgan announced on Thursday that it’s proceeding with the $7.4-billion pipeline as long as it secures $1.75 billion through an initial public offering (IPO).
The company released 103 million shares of common stock for $17 apiece, with the IPO ending May 31.
The IPO is one of the largest ever in Canada and Kinder Morgan is confident all the money will be raised, according to spokesman Dave Conover.
The timing of the IPO, issued at a time when B.C. has its first minority government in 65 years, is purely coincidental, he said.
“When we first started this project four years ago, who knew? But we put a clause in all the shipper agreements that said we had until end of month to make a final investment decision, and if we didn’t do it by then, then they (the shippers) were no longer responsible for reimbursing any of the development costs of the project, which as you might imagine are quite large,” Conover told the NOW. “Those agreements were drafted before the last election in 2013.”
The Edmonton-to-Burnaby pipeline received federal approval last November, and shortly after, Premier Christy Clark announced Kinder Morgan had met its five conditions.
But the May 9 election resulted in the B.C. Greens holding the balance of power. Leader Andrew Weaver has vowed to stop the pipeline.
Conover said Kinder Morgan isn’t worried about a minority government because it is a federally approved project.
“We’re moving forward with permitting and we expect it to be not an issue. Obviously, there are challenges out there, legal challenges, but we’ll work through all that. We expect to be on track for getting all our required permits, fulfilling all our 157 conditions and moving forward with construction this fall. We’re confident we can address any safety or construction or operational concern,” he said.
Grand Chief Stewart Phillip, president of the Union of British Columbia Indian Chiefs, issued a statement, saying Kinder Morgan is facing “determined opposition,” 19 lawsuits and a majority of opposed MLAs.
“This company was founded from the ashes and rubble of Enron, a company synonymous with scandal, corporate fraud and bankruptcy,” Phillip said in a press release. “Today, these same reckless cowboys are trying to convince gullible investors to plow cash into a pipeline they know will never be built.”
Construction is expected to start in September with a completion date of December 2019.
