Reuters is reporting that Kinder Morgan wants to sell their Canadian business.
According to a Reuters report, Kinder Morgan has hired TD Securities “to facilitate a potential sale of its Canadian business.”
The sale could bring in up to $2.4 billion.
The report notes that “should the move succeed, it would mark the exit of the U.S. pipeline giant from Canada, having closed its sale of the Trans Mountain pipeline to the Canadian government for about C$4.5 billion at the end of last month.”
This is directly related to the Trans Mountain debacle:
“At a conference earlier this month in New York, Kinder Morgan Chief Executive Steven Kean indicated his willingness to sell the rest of the Canadian business, noting that the original purpose of these assets was to support the Trans Mountain project.”
When a business sees a potential for growth and profit in a certain location, they don’t up and leave. The fact that – according to Reuters – Kinder Morgan is seeking to leave Canada entirely is a devastating blow to an energy sector that is already reeling from a combination of foreign-funded propaganda against Canadian oil, and the Trudeau government’s refusal to create a climate of certainty when it comes to approvals.
To really get a sense of how badly the situation has deteriorated, consider that Kinder Morgan was once willing to spend billions to expand the Trans Mountain pipeline. That then shifted to Kinder Morgan being willing to spend nothing, to then getting paid $4.5 billion of taxpayers money (for a pipeline that was supposed to be expanded which is now in limbo), to seemingly planning to leave the country entirely.
I wish I could say it was going to get better, but we know that this is just the tip of the iceberg.