Kinder Morgan Canada, the Canadian subsidiary of the US pipeline company Kinder Morgan, has raised C$5.5bn (US$4.16bn) through three credit facilities in order to finance the controversial Trans Mountain pipeline expansion project.
The three credit facilities are namely: a C$4bn (US$3bn) construction credit to support the construction, development and completion of the project, a C$1bn (US$760m) to cover additional costs and a C$500m (US$378m) for corporate purposes.
The Trans Mountain pipeline expansion is expected to cost at least C$7.4bn (US$5.5bn) and is expected to increase the existing 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. The project, which was 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. Kinder Morgan expects to begin construction in September 2017, with a completion scheduled for December 2019.