Kinder Morgan Strikes Supply Deals to Support $4.1B Pipeline Expansion
Houston energy transport and storage company Kinder Morgan (NYSE:KMI) said Wednesday that it has inked 20-year contracts with shippers to support its planned $4.1 billion Trans Mountain pipeline expansion in Canada.
The contracts call for 510,000 barrels of oil a day, which will help expand the Trans Mountain pipeline to about 750,000 barrels of oil from 300,000 currently.
The commitments were about 150,000 less than the company first announced on April 12, due to a few shippers failing to obtain their boards’ approvals, Kinder Morgan said.
Financial details or names of suppliers were no provided.
“The proposed project will significantly increase market access for Canadian crude and will expand Trans Mountain by completing the twinning of the existing pipeline from Edmonton, Alberta, to Burnaby, British Columbia,” Ian Anderson, president of Kinder Morgan Canada said in a statement.
The 714-mile pipeline has provided oil to Canada for nearly 60 years. Kinder Morgan says it provides 90% of the gasoline supplied to the interior and south coast of British Columbia.