Kinder Morgan’s TMP Expansion Gets Canadian Government’s Approval
Pipeline expansion gets approval
Kinder Morgan’s (KMI) TMP (Trans Mountain Pipeline) expansion got approval from the Canadian government on November 29. In May 2016, Canada’s NEB (National Energy Board) had approved the pipeline and recommended that the Canadian government approve the proposed expansion.
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The way ahead
“This is a defining moment for our project and Canada’s energy industry,” said Ian Anderson, president of Kinder Morgan Canada.
Kinder Morgan plans to begin construction of the pipeline in September 2017 with an in-service date expected in late 2019. The project expands KMI’s existing Trans Mountain Pipeline system between Edmonton, Alberta, and Burnaby, British Columbia. As the above map shows, the expansion would create a “twinned pipeline,” increasing the capacity of the system from 300,000 barrels per day to 890,000 barrels per day.
Relating to the approval, Canadian Prime Minister Justin Trudeau said that as long as Kinder Morgan respects the stringent conditions, “this project will get built because it’s in the national interest of Canadians.” The project has been approved subject to 157 conditions. Its expected cost is ~$5.1 billion.
In the next article, we’ll learn more about the rich Alberta reserves from where the pipeline will move oil to British Columbia.