The Canadian branch of the US pipeline company Kinder Morgan has filed a preliminary prospectus with the US Securities and Exchange Commission (SEC), launching the process for an initial public offering (IPO) of restricted voting shares. The proceeds from the IPO, whose size and timeline were not disclosed, would help finance its Trans Mountain expansion project, estimated at C$7.4bn (US$5.48bn).
The controversial Trans Mountain expansion project, approved by the Canadian government in November 2016 despite the opposition of environmental groups and residents, will stretch from Edmonton, Alberta, to Burnaby, British Columbia. It aims at increasing the crude oil transportation capacity from approximately 300,000 bbl/d to 890,000 bbl/d by twinning the existing light crude oil and refined product pipeline.
Kinder Morgan has started talks with institutional investors to raise funds for the pipeline project and is looking at either an IPO or a joint venture. The group is continuing to pursue the two options and expects to begin construction later in 2017.