Kinder Morgan Picks Contractors for Trans Mountain Pipeline Project

Researched by Industrial Info Resources (Sugar Land, Texas)--Kinder Morgan Canada Limited (TSX:KML) (Calgary, Alberta) has selected or signed memorandums of understanding with six contractors to build the Trans Mountain crude oil pipeline expansion project in British Columbia and Alberta. Construction is expected to begin this month on the $7.4 billion pipeline.

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. Kinder Morgan Canada is the Canadian arm of Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas). The pipeline construction and associated terminal expansions are expected to take about 28 months to complete, with the work distributed among several spreads, or sections, along the route between Edmonton, Alberta, and Burnaby, British Columbia. For more information, see Industrial Info's project report.

The project has its share of controversy. The government of British Columbia is preparing for a legal fight against the expansion, due in part over concerns about the amount of crude oil tanker traffic the terminal will bring.

"Our government made it clear that a seven-fold increase in heavy oil tankers in the Vancouver harbor is not in B.C.'s [British Columbia's] best interests," said British Columbia Environment and Climate Change Strategy Minister George Heyman in a press statement last month. "Not for our economy, our environment, or thousands of existing jobs. We will use all available tools to protect our coastal waters and our province's future."

Kinder Morgan said in a press statement that it continues to proceed with project planning, permitting, engagement and design required to meet the conditions set by Canada's National Energy Board and the British Columbia government, as well as necessary local permitting. For related information, see August 14, 2017, article - British Columbia to Fight Kinder Morgan's Trans Mountain Pipeline Expansion.

"Getting the construction contractors on board represents a significant milestone for Trans Mountain and demonstrates our commitment to delivering the project in a timely, cost-effective manner," Ian Anderson, president of Kinder Morgan Canada Limited, said in a press statement.

The contractors include:

• Midwest Pipelines Incorporated (Edmonton, Alberta)
• Ledcor Sicim Limited Partnership (Ledcor Group, headquartered in Vancouver, British Columbia, and Sicim, headquartered in Busseto, Italy)
• Surerus Murphy Joint Venture (Surerus Pipeline Incorporated, headquartered in Fort St. John, British Columbia, and J. Murphy & Sons Limited, headquartered in London, England)
• Macro Spiecapag Joint Venture (Macro Pipeline Services Incorporated, headquartered in Fort St. John, British Columbia, and Spiecapag Entrepose, headquartered in Colombes, France)
• Somerville-Aecon Energy Group (Aecon Group Incorporated, headquartered in Calgary, Alberta, and Robert B. Somerville Company Limited, headquartered in King City, Ontario)
• Kiewit Ledcor TMEP Partnership (Kiewit Corporation, headquartered in Omaha, Nebraska, and Ledcor Group of Companies, headquartered in Vancouver, British Columbia)

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