Kinder Morgan Canada on June 1st filed a letter with the National Energy
Board (NEB) requesting that the NEB defer further consideration of
Northern Gateway until Northern Gateway Pipelines Limited Partnership
can demonstrate that adequate commercial support for the project exists.
The application is not supported by binding commercial support to
demonstrate the need and necessity of the project.
Kinder Morgan Canada still maintains that incremental expansion of its
existing 1,150 km Trans Mountain Pipeline between Edmonton, Alberta and
Burnaby, B.C., when market demand and commercial support exists, is the
best alternative for moving additional petroleum products to the West
Coast of Canada. The Northern Gateway filing does not adequately
consider the alternative of Trans Mountain expansion.
Responding to Enbridge’s filing for its Northern Gateway Pipeline
Project, Kinder Morgan Canada President Ian Anderson stated that “We
believe that the continued expansion of our existing pipeline, along
existing right of way, will have less environmental and traditional
First Nations territory impacts, along with lower business risk and
costs. Our Trans Mountain Pipeline has been providing safe, reliable and
efficient transportation delivery service to the Lower Mainland and to
other destinations via its Westridge Marine Terminal on Burrard Inlet in
Burnaby, B.C. for more than 50 years, and we already have well
established relationships with our neighbours along the existing
pipeline. In addition, Port Metro Vancouver (PMV) is a longstanding,
active port with strong existing capabilities.”
Kinder Morgan Canada continues to advance its Trans Mountain expansion
plans and discussions with current and prospective shippers, including
Asian interests. Kinder Morgan believes it is important to match
facilities expansion with commercial support in a long-term sustainable
fashion. Kinder Morgan will file an application for the next phase of
its expansion with the National Energy Board when commercial support
exists, and only after it has completed a thorough public and First
Nations consultation and engagement process. Anderson adds, “We have a
track record of meaningful and mutually beneficial First Nations and
Environmental organization engagement. We will ensure that our future
plans are advanced with the same early honesty and openness as past
efforts.”
Kinder Morgan supports the development of off shore markets for Canadian
crude oil, and has been facilitating such development already with safe
movements of crude through PMV for the last several years. Anderson
adds, “Every barrel of oil that producers want to sell to Chinese
interests today is moving, and we intend to continue to grow that supply
opportunity through rational, stakeholder respectful, and market-based
expansions that align Canadian producers with Asian demand.”
The recent successful Pump Station expansion project and the newly
completed Anchor Loop expansion project through Jasper National and
Mount Robson Provincial Parks, have increased the Trans Mountain
Pipeline’s capacity by about 33% (from 225,000 bpd to 300,000 bpd).
Additional Trans Mountain expansions, would add another 400,000 bpd of
capacity for a total of 700,000 bpd, serving Lower Mainland, Washington
State and waterborne markets.
For more information about Kinder Morgan Canada visit:
www.kindermorgan.com/business/canada
