OTTAWA—The Canadian government said on May 29 it will buy Kinder Morgan Canada Ltd.’s Trans Mountain pipeline project for $3.46 billion but does not intend to be the long-term owner of the project, which has faced fierce environmental opposition.
Canada will also offer federal loan guarantees to ensure construction continues through the 2018 season as part of the deal with the company, a unit of Houston-based Kinder Morgan Inc. (NYSE: KMI).
“The federal government has reached an agreement with Kinder Morgan to purchase the existing Trans Mountain pipeline, and infrastructure related to the Trans Mountain expansion project,” Finance Minister Bill Morneau told reporters.
“So our message today is simple: when we are faced with an exceptional situation that puts jobs at risk, that puts our international reputation on the line, our government is prepared to take action,” he said.
The company had set a May 31 deadline to decide if it would proceed with the expanded line from Edmonton, Alberta, to a port in the Vancouver area, which would give landlocked Canadian crude greater access to foreign markets.
Kinder Morgan set the deadline in part due to frustrations with delays caused by the British Columbia government, which is concerned about possible oil spills.
Recommended Reading
AIQ, SLB Collaborate to Speed Up Autonomous Energy Operations
2025-03-16 - AIQ and SLB’s collaboration will use SLB’s suite of applications to facilitate autonomous upstream and downstream operations.
SLB Launches Electric Well Control Tech to Replace Hydraulics
2025-03-04 - SLB says the new systems reduce costs and provide real-time data for operators.
Halliburton Sees Strong Adoption of New Oilfield Tech Offerings
2025-01-22 - Halliburton Co.’s Zeus e-fracs, Octiv auto-fracs and the Sensori monitoring platform are setting the stage for long-term growth, CEO Jeff Miller says.
Then and Now: 4D Seismic Surveys Cut Costs, Increase Production
2025-03-16 - 4D seismic surveys allow operators to monitor changes in reservoirs over extended periods for more informed well placement decisions. Companies including SLB and MicroSeismic Inc. are already seeing the benefits of the tech.
Woodside Awards SLB Drilling Contract for Project Offshore Mexico
2025-03-31 - SLB will deliver 18 ultra-deepwater wells for Woodside Energy’s Trion ultra-deepwater project starting in early 2026.