“The uncertainty as to whether we will be able to finish what we start leads us to the conclusion that we should protect the value that KML has, rather than risking billions of dollars on an outcome that is outside of our control,” says Kinder Morgan.
Kinder Morgan has suspended “non-essential spending” on the Trans Mountain Pipeline Expansion project, raising the odds that the project will be ‘delayed to death’ by the B.C. NDP as the Trudeau government fails to resolve the impasse.
Here’s part of what the company said in a statement:
“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. The Project has the support of the Federal Government and the Provinces of Alberta and Saskatchewan but faces continued active opposition from the government of British Columbia. “A company cannot resolve differences between governments. 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.
“Today, KML is a very good midstream energy company, with limited debt. The uncertainty as to whether we will be able to finish what we start leads us to the conclusion that we should protect the value that KML has, rather than risking billions of dollars on an outcome that is outside of our control,” Kean said. “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.”
This is exactly what the radical left in B.C. wanted. Even if they can’t win in court, they just want to keep delaying the project until the company gives up. And while Kinder Morgan says they plan to keep “advancing the Project,” there’s no doubt that this is a huge setback.
Failure of Trudeau’s ‘climate plan’
The Trudeau government promised people that by accepting their carbon tax climate ‘plan,’ they would get more pipelines in return.
It hasn’t happened.
Instead, the regulatory burden has been made nearly impossible to navigate, investment is fleeing, and pipelines are being blocked.
And while the Trudeau government claims they support the project, they are doing as little as possible to get it going, giving the impression that they want they really want project to collapse, but are just unwilling to say it.
This is another disappointing moment for Canada, as our nation continues to be weakened from within by those who are trying to wreck our energy industry.
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