Kinder Morgan Inc. struck an agreement with the Canadian federal government that would allow construction of the Trans Mountain oil pipeline expansion project to move forward, CBC News reported May 28, citing a senior government official.
The agreement will likely follow one of three options: the government may compensate Kinder Morgan or any company that builds the project for losses that incur because of British Columbia's attempt to stall it; the government could buy the project from Kinder Morgan, build it and then sell the expansion project when finished; or the government could buy the project from Kinder Morgan and put it up on the market for another entity willing to build the line.
Canadian Finance Minister Bill Morneau is expected to announce an agreement early on May 29, the official told CBC News. The development comes just before Kinder Morgan's May 31 deadline for an accord with Canadian governments to move the expansion forward, otherwise the project would be canceled.
Kinder Morgan in April suspended investment on the project, which would nearly triple the oil pipeline's capacity to 890,000 barrels per day, amid challenges from the government of British Columbia, First Nations and activists.
