Kinder Morgan Canada Limited (KML) has completed its initial public offering and finalised its investment decision on the Trans Mountain expansion project.
The final investment decision to proceed with the Trans Mountain expansion project triggers a number of important next steps including the finalising of construction contracts and the actualisation of the financial, employment and safety benefits the company has committed to through more than five years of engagement and consultation.
“This is an exciting day for our customers for communities and for the many individuals who are relying on this project to deliver jobs and economic benefits to their communities,” said Ian Anderson, President of KML. “This securing of financing for the project demonstrates the need for and interest in the opportunity for Canada to have better access to world markets.”
“We have been talking about the benefits of the project for more than five years. Today, we can begin to deliver these benefits by awarding substantial contracts, delivering thousands of middle class jobs to Canadians and by moving forward with our agreements with Aboriginal communities,” added Anderson.
The final investment decision means that investments in safety, jobs, the environment and communities will commence, including:
- Once in service, annual payments to the province of BC for the BC Clean Communities Programme for local, environmental projects.
- Mutual benefits agreements payments and opportunities for Aboriginal communities in BC and Alberta.
- Contributions for communities along the pipeline through Community Benefits Agreements for local projects.
Investments to Western Canada Marine Response Corp. for five new response bases, vessels and more than 100 new employees.
The CAN$7.4 billion expansion project will result in direct and lasting economic benefits to Canada and communities along the pipeline corridor, including the equivalent of 15 000 jobs per year during construction. Overall, the Conference Board of Canada estimates that the project will generate CAN$46.7 billion in government revenues and 802 000 person years of employment, the equivalent of 40 000 jobs each year, over more than 20 years.
Construction is set to begin in September 2017 and the pipeline is expected to be placed in-service by the end of 2019.
Read the article online at: https://www.worldpipelines.com/business-news/01062017/investment-decision-finalised-for-trans-mountain/