Canada is going to buy the controversial Trans Mountain pipeline – which terminates in Burnaby and has been the subject of more than 200 arrests and dozens of protests during the past few months.
The Kinder Morgan Canada Limited board announced this morning that the Government of Canada has agreed to purchase the Trans Mountain pipeline system and the expansion project for $4.5 billion, and to work with the board to seek a third party buyer through July 22, 2018.
As part of the agreement, the feds have agreed to fund the resumption of TMEP planning and construction work by guaranteeing TMEP’s expenditures under a separate federal recourse credit facility until the transaction closes. All the parties involved expect to close the transaction late in the third quarter or early in the fourth quarter of 2018, subject to KML shareholder and applicable regulatory approvals.
“We are pleased to reach agreement on a transaction that benefits the people of Canada, TMEP shippers and KML shareholders,” said KML chairman and CEO Steve Kean. “The outcome we have reached represents the best opportunity to complete TMEP and thereby realize the great national economic benefits promised by that project. Our Canadian employees and contractors have worked very hard to advance the project to this critical stage, and they will now resume work in executing this important Canadian project.”
Stay tuned for more on this breaking story throughout the day.