Kinder Morgan Energy Partners L.P. (NYSE: KMP) will proceed with its proposed expansion of the Trans Mountain crude oil pipeline in British Columbia, Canada following a successful open season that garnered 660,000 barrels per day (b/d), 20-year commitments. When completed, the proposed expansion will increase capacity on Trans Mountain from the existing capacity of 300,000 b/d to 850,000 b/d.
“We are extremely pleased with the strong commercial support that we received through the open season, which reinforces the appeal of our project and our approach,” Ian Anderson, president of Kinder Morgan Canada, said in a news statement. “This strong commercial support shows the market’s enthusiasm for expanding market access for Canadian crude by expanding an existing system.” This support from the market better defines the project and enables Kinder Morgan Canada to fully engage the local communities.
“We are still early in the engagement process of the project,” Anderson continued. “We share respectful, open relationships with many communities and organizations interested in our business. We are committed to an 18 to 24 month inclusive, extensive and thorough engagement on all aspects of the project with local communities along the proposed route and marine corridor, including First Nations and Aboriginal groups, environmental organizations and all other interested parties. We will also consider providing financial support to local communities for environmental initiatives. We have been planning for this day for many years and we are keen to start in depth engagement this summer.”
The $5 billion project includes preliminary scope of the proposed project includes twinning the existing pipeline within the existing right-of-way; building new pump stations along the system; increasing the number of storage tanks at existing facilities; and expanding the Westridge Marine Terminal.
The company anticipates submitting a facilities application for a regulatory review with Canada's National Energy Board in 2014. If approved, construction could begin in 2016 with operations beginning by 2017.
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