Kinder Morgan to restart construction on $5.8bn Trans Mountain project

Kinder Morgan Canada is planning to restart construction on the C$7.9bn ($5.8bn) Trans Mountain pipeline expansion project next month.

The development comes after the company halted investment in the project in April after facing opposition from environmentalists and jurisdictional issues.

Thereafter, the Canadian Government reached an agreement to acquire the project from Kinder Morgan, in a deal worth C$4.5bn ($3.4bn).

Although the Trans Mountain pipeline is supported by the Alberta and federal governments, it faces resistance from the province of British Columbia (BC).

Connecting Strathcona County, Alberta, to Burnaby, BC, the project involves almost tripling the capacity of the pipeline system from 300,000 barrels a day to 890,000 barrels a day.

According to a six-month construction schedule filed with the National Energy Board (NEB), work is anticipated to commence in Alberta next month and the North Thompson region of BC in September.

Kinder Morgan also intends to carry out additional construction in the Lower Mainland of BC.

However, the construction schedule is determined by certain conditions, including the receipt of necessary local permits and permissions.

Kinder Morgan Canada president Ian Anderson said: “We’re excited to be moving forward in Alberta and the North Thompson, bringing and delivering on our commitments to local, regional and Aboriginal jobs and benefits.”

“We have undertaken thorough, extensive and meaningful consultations with indigenous peoples, communities and individuals, and remain dedicated to those efforts and relationships as we move forward with construction activities.”

The expansion project will give Canadian oil producers greater access to markets abroad.