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 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. The public offering is set to close May 31.
The IPO would be one of the biggest ever on the Toronto Stock Exchange and Kinder Morgan spokesman Dave Conover says the company is confident it will be a success.
“We’re confident that we can work with whether it’s a Clark minority government or a new coalition government.”
– Dave Conover, Kinder Morgan spokesperson
Conover said the timing of the public offering wasn’t intended to coincide with B.C.’s provincial election which has created political uncertainty.
The process is proceeding because the project’s financing contingency period, as specified in shipper agreements, concludes at the end of May.
B.C. election results create uncertainty
B.C.’s election has left the anti-pipeline Greens holding the balance of power in a minority situation in the legislature, raising concerns they will use their influence to persuade whichever party forms the government to take measures to block the project.
The Liberals and NDP are in negotiations with the Greens.
“We’re confident that we can work with whether it’s a Clark minority government or a new coalition government,” Conover said. “I’m sure that we’ll be talking to all three of the parties as the months unfold.”
Green Leader Andrew Weaver has previously said the party believes it has a responsibility to stop the federally approved project, which would triple the shipment capacity of Alberta oil products to British Columbia’s coast.