Firm says no further shareholder funds will be committed
Kinder Morgan Canada has suspended all non-essential activities and related spending on its Trans Mountain Expansion Project.
The firm announced Sunday that due to continued opposition to the project by the province of BC, it will not be committing any further shareholder funds to the project.
"As KML has repeatedly stated, we will be judicious in our use of shareholder funds. In keeping with that commitment, we have determined that in the current environment, we will not put KML shareholders at risk on the remaining project spend," said KML Chairman and Chief Executive Officer Steve Kean.
He said that a company cannot resolve differences between governments; the Federal government and provincial governments of Alberta and Saskatchewan have backed the project.
“While we have succeeded in all legal challenges to date, a company cannot litigate its way to an in-service pipeline amidst jurisdictional differences between governments," added Kean.
"To date, we have spent considerable resources bringing the Project to this point and recognize the vital economic importance of the Project to Canada. Therefore, in the coming weeks we will work with stakeholders on potential ways to continue advancing the Project consistent with the two principles previously stated,” said Kean.
The company will continue to seek a positive outcome by the end of May but only if shareholder funds are not put at undue risk.
"While we are prepared to accept the many risks traditionally presented by large construction projects, extraordinary political risks that are completely outside of our control and that could prevent completion of the project are risks to which we simply cannot expose our shareholders," said Kean.