British Columbia to Fight Kinder Morgan's Trans Mountain Pipeline Expansion

Researched by Industrial Info Resources (Sugar Land, Texas)--The recently elected provincial government of British Columbia has not been good for Kinder Morgan Canada Limited's (TSX:KML) (Calgary, Alberta) plans to expand its Trans Mountain crude oil pipeline in Canada. British Columbia's New Democratic Party, which took power last month, has vowed to take legal action against the pipeline expansion. Industrial Info is tracking $21.8 billion in Kinder Morgan projects.

Kinder Morgan wants to expand the Trans Mountain Pipeline from carrying 300,000 barrels per day (BBL/d) to 890,000 BBL/d of crude oil from Alberta's oil sands to Canada's west coast for export. Despite the proposed legal fights, Kinder Morgan says it will begin construction in September. For more information, see Industrial Info's project report. Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas) launched the initial public offering of its Canadian subsidiary earlier this year to help fund construction of the pipeline.

One aspect of the debate surrounding the expansion of the oil pipeline is the increased amount of oil tankers that would be necessary at British Columbia ports. In a statement on Thursday, British Columbia Environment Minister George Heyman said, "A seven-fold increase in heavy oil tankers in B.C.'s coastal waters is simply too great a risk to our environment, our economy and to thousands of existing jobs."

Among the projects associated with actual pipeline and pump station construction is the addition of docks and crude oil tanks at the Port of Vancouver in Burnaby, British Columbia. Kinder Morgan wants to construct three new berths to accommodate Aframax-class oil tankers. In addition, the company wants to construct 14 new tanks with a capacity of 250,000 to 350,000 barrels for more than 4 million barrels of additional crude oil storage in Burnaby. The projects have a combined total investment value of $145 million. For more information, see Industrial Info's project reports on the dock additions and tank additions.

Other Kinder Morgan projects remain less controversial and seem to be going on schedule for the company. In Alberta, Kinder Morgan is currently underway with the construction of a grassroot crude oil storage terminal, which will include 12 tanks ranging in size for a total storage capacity of more than 4.8 million barrels. The terminal will be connected via pipeline to Kinder Morgan's existing storage terminal in Edmonton. Construction on the $300 million project began in late 2015 and is expected to be completed by the end of the year. For more information, see Industrial Info's project report.

Kinder Morgan's grassroot Utopia natural gas liquids (NGL) pipeline kicked off construction a few months ago and will deliver up to 50,000 BBL/d of NGLs, including ethane and propane, more than 200 miles from Harrison County, Ohio, to Fulton County, Ohio, for further delivery to Ontario. Construction on the $500 million project is expected to be completed in the first quarter of next year. For more information, see Industrial Info's project report.

The company is also entering the liquefied natural gas (LNG) sector with construction of its Elba Island LNG facility in Georgia. The project is being constructed at an existing regasification terminal and will be able to produce approximately 2.5 million tons per year of LNG for export. Construction on the $2.5 billion project is expected to be wrapped up early next year and will help the U.S. maintain its by-then acquired status as a net natural gas exporter. For more information, see Industrial Info's project report.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.