Kinder Morgan is asking for ‘clarity’ from the provincial and federal governments by May 31 of this year, or they say the Trans Mountain pipeline extension will not be built.
CEO Steve Kean told investors Monday the company needed “final clarity” to go forward with the pipeline, with assurance they could complete construction efficiently through British Columbia without the “threat” of additional requirements from the provincial government. Proposed restrictions on transporting diluted bitumen, and the B.C. government’s consistent vocal opposition to the project, has created uncertainty around its viability, he said.
“Given where we are, we cannot change the season in Canada when we can do certain work. We need that clarity by May 31. That’s what it is. We don’t think of it as something that is extendable,” he said. “We have been successful in our court actions to date, but we can’t build a project in a court house.”
Mayor Derek Corrigan said the May 31 deadline is an ominous ultimatum to Alberta Premier Rachel Notley and Prime Minister Justin Trudeau to take additional steps to firm up investment in the project.
"They're claiming they're going to pull out their investment and that puts real pressure on both Alberta and the federal government to do something. It's part of their gamesmanship,” he told the NOW. "I have no doubt whatsoever that much of it is being done in conjunction with Rachel Notley."
Corrigan, who previously stated he’d stand in front of bulldozers to stop the expansion, said the investors need to be confident there will be a good return in order to make it financially viable for Kinder Morgan to continue.
“When you’ve got all the Metro Vancouver municipalities and the provincial government opposed to a project vehemently, it makes it extremely difficult to bet on it,” he said.
“I suspect we’ll see a lot more from the corporate media giving credence to the economic case for Kinder Morgan and demeaning the position of British Columbia. That’s all part the power game that goes on, that’s the corporate interest, the investment, the banks that are all involved in this kind of project and involved with the oil industry.”
Now that preparatory work has finished in Burnaby, construction will cost $200- to $300-million a month to go forward on the $7.4-billion expansion, according to the company. Kinder Morgan has indicated they need assurance they can protect their shareholders before that happens.
Karl Perrin, spokesperson for Burnaby Residents Opposing Kinder Morgan Expansion (BROKE), said he’s pleased to hear that efforts to stop the pipeline may be paying off.
“If we can keep the pressure up on the provincial government to continue to oppose it and protect the coast and protect future generations from climate change, we will have successfully stopped part of the expansion of the tar sands,” he told the NOW.
But Chris Gardner, president of the Independent Contractors and Business Association in Burnaby, said the B.C. government is making a mistake by thwarting efforts to build the pipeline.
“This decision will send a simple chilling message to businesses looking to start or expand major projects here – stay away from B.C. because you cannot rely on the government to honour its commitments or follow the law,” he said in a statement. “The province and the city of Burnaby have not acted fairly and have given no thought to the national interest.”
