VANCOUVER, B.C. – Kinder Morgan says it will proceed with the $7.4-billion Trans Mountain pipeline expansion as long as it secures satisfactory financing for the project through its initial public offering.
The Texas-based company, in conjunction with its indirect subsidiary Kinder Morgan Canada, announced on Thursday its final investment decision on the project, which is conditional on the successful completion of the IPO.
The company has offered 102.9 million shares at a price of $17 per share in an effort to raise $1.75 billion, and the public offering is set to close May 31.
Kinder Morgan Canada president Ian Anderson says in a statement the execution planning is complete, approvals are in hand and the company is now ready to commence construction this fall.
The statement says “the political climate was not ideal,” but the process is proceeding at this time because the project’s financing contingency period, as specified in shipper agreements, concludes at the end of May.
British Columbia’s recent election has left the anti-pipeline Greens holding the balance of power in a minority government, raising concerns that the party will use its influence to persuade the ruling party to take measures to block the project.