Kinder Morgan says it is prepared to go ahead with its Trans Mountain pipeline project.
The Houston-based company announced its final investment decision on the $7.4-billion project on Thursday, pending a successful initial public offering of shares to raise capital.
The company plans to issue 102.9 million shares of common stock at $17 a share to raise $1.75 billion. That should be done no later than the end of May, the company stated in its release.
“Upon the completion of the IPO, we will have secured satisfactory financing for the Trans Mountain Expansion Project. We are excited to be moving forward on this tremendous project which is expected to benefit (Kinder Morgan Inc.) and (Kinder Morgan Canada Ltd.) as well as our Trans Mountain shippers and Canada,” said Steve Kean, Kinder Morgan chief executive officer in the release.
On paper, the final investment decision was the last hurdle to be cleared before work begins building the pipeline, which will more than triple the capacity and increase tanker traffic on Burrard Inlet seven-fold.
“Our execution planning is complete, our approvals are in hand, and we are now ready to commence construction activities this fall generating thousands of direct jobs for Canadians, including significant benefits to Indigenous communities in Alberta and British Columbia,” said Ian Anderson, president of Kinder Morgan Canada Ltd., in the release.
The federal government gave the pipeline approval in December last year. The province followed suit giving its environmental certificate in January.
However, those approvals are currently being challenged in court through a number of lawsuits filed by environmental groups and First Nations, including Squamish and Tsleil-Waututh Nations on the North Shore. Those lawsuits allege the Crown failed in its constitutional duty to consult with First Nations and that the approvals failed to respect Aboriginal rights and title.
And the provincial approval may be in jeopardy following the May 9 election. The Liberals hold the most seats but not enough to pass majority votes and both opposition parties campaigned on rejecting the pipeline.
The release from Kinder Morgan acknowledged that “the political climate was not ideal” but the project financing contingency period, as agreed to with shippers, was to conclude at the end of May.
A four-day march led by First Nations including the Tsleil-Waututh and Squamish in opposition to the project is scheduled to conclude on Sunday with a demonstration outside Kinder Morgan’s gates at the Westridge Terminal in Burnaby, followed by a rally at Westridge Park.
