Kinder Morgan reaches final investment decision on Trans Mountain Investment Project
Kinder Morgan, Inc. (KMI) recently announced a final investment decision for the Trans Mountain Expansion Project in conjunction with its indirect subsidiary, Kinder Morgan Canada Limited (KML).
The initial public offering of 102.9 million shares of common stock to the public will be priced at C$17.00 per share for total gross proceeds of C$1.75 billion. The final investment decision is conditioned on the successful completion of the IPO, which is expected to take place by no later than May 31.
“Upon the completion of the IPO, we will have secured satisfactory financing for the Trans Mountain Expansion Project,” Kinder Morgan CEO Steve Kean said. “We are excited to be moving forward on this tremendous project which is expected to benefit KMI and KML as well as our Trans Mountain shippers and Canada”
The C$7.4 billion project will provide western Canadian oil producers with an additional approximately 590,000 barrels per day of shipping capacity and tidewater access to the western United States and global markets.
The project has attained 15- and 20-year shipper commitments of 707,500 barrels per day, which equals approximately 80 percent of the capacity on the expanded pipeline. The other 20 percent is reserved for spot volumes as required by the National Energy Board.
“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,” KML President Ian Anderson said.
Construction on the project is projected to begin in September 2017 and be completed in December 2019, providing that financing is secured as expected.
