$2 Billion Cost Overrun Calls Fate of Kinder Morgan Pipeline Into Question

The cost of the Trans Mountain Expansion has now risen to $7.4 billion, an increase of $2 billion

Vancouver, BC – Today Kinder Morgan Inc revealed that the total cost of their Trans Mountain Expansion has risen to $7.4 billion, an increase of $2 billion from when the project was first announced four years ago. Today’s announcement combined with ongoing financial woes at Kinder Morgan, First Nations legal challenges and continued community opposition calls into question whether Kinder Morgan will be able to complete the project.

“Kinder Morgan borrowed heavily to finance a series of major acquisitions just before the downturn in global energy prices, the combination of these two factors has left the company with high debt to equity ratio which has in turn hurt their bond rating, making it difficult for them to find financing for new projects like Trans Mountain” said Sven Biggs, Energy and Climate Campaigner with Stand.earth.

In addition to those challenges Kinder Morgan faces the prospect of a drawn out legal battle with a long list of First Nations who have launched judicial challenges against the issuing of permits for the pipeline and continuing opposition from communities along the pipeline route.

“Today’s announcement only adds to the difficulties facing this pipeline – increasing community opposition, brewing protests and legal challenges, coupled with these financial challenges make it more and more likely that this pipeline will never be built” said Biggs.
 
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For more info contact:
Sven Biggs, 778-882-8354 

Stand.earth is an environmental organization that challenges corporations and governments to treat people and the environment with respect. Formerly ForestEthics, Stand has helped keep 2 trillion barrels of oil in the ground, placed 6.4 million hectares of forest into ecosystem-based management, and shifted over $100 billion of corporate purchasing into more sustainable sources.