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Kinder Weighs Full Exit From Canada After Trans Mountain Debacle

Published 2018-09-06, 12:00 a/m
© Reuters.  Kinder Weighs Full Exit From Canada After Trans Mountain Debacle
KMI
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(Bloomberg) -- Kinder Morgan Inc (NYSE:KMI). hinted at a potential offloading of its remaining Canadian assets following the sale of the contentious Trans Mountain pipeline expansion to the federal government.

Speaking at an energy conference Wednesday, Kinder Morgan Chief Executive Officer Steve Kean said that while its Canadian affiliate has “attractive assets” and “no debt on the balance sheet,” the company’s primary objective was to use those projects to support the Trans Mountain expansion.

“It’s a set of midstream assets in what we think is an attractive seller’s market for those assets,” he said. “We are going to explore that over the coming months.”

In addition to the Canadian portion of the Cochin pipeline system and the Jet Fuel pipeline system, Kinder Morgan Canada Ltd. has a network of crude storage and rail terminals in Edmonton, Alberta, and the Vancouver Wharves Terminal in British Columbia.

“We can always say no, because the assets themselves will stand on their own,” Kean said.

Kinder Morgan Canada shareholders voted last week to proceed with a C$4.5 billion sale of the Trans Mountain pipeline to the federal government. The decision came less than an hour after a Canadian court nullified its approval.

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