Kinder Morgan’s once surefire Trans Mountain plan now struggling

|About: Kinder Morgan, Inc. (KMI)|By:, SA News Editor

Kinder Morgan (KMI, KMP) Canada president Ian Anderson says the degree to which politics has played a role in shaping public opinion about the Trans Mountain pipeline expansion caught him off guard.

Anderson says there is strong support in the western provinces for oil pipelines and energy infrastructure, but Kinder Morgan has struggled with a dizzying array of questions from regulators, municipalities and various levels of government.

Once a viewed as a slam-dunk proposal to open potentially vast new markets in Asia for oil sands production, the expansion now faces some of the same resistance that has threatened the viability of rival projects such as Keystone XL and Northern Gateway.

The plan to build a second, 540K bbl/day pipeline from Edmonton to the Vancouver region will increase capacity on the Trans Mountain system to 890K bbl/day from its current design of 300K.