Copyright of the Daily Oil Bulletin 2017
Kinder Morgan ‘Very Confident’ IPO Will Close As Expected
Although Kinder Morgan, Inc.’s final investment decision on the $7.4 billion Trans Mountain expansion announced Thursday is conditional on a successful initial public offering, (DOB, May 25, 2017), that doesn’t appear to be a major concern.
Company spokesperson Dave Conover said this morning in an email that Kinder Morgan is “very confident” it will close as expected next week.
Kinder Morgan has priced its IPO of 102.9 million shares of common stock at a price to the public of C$17 per share for total gross proceeds of C$1.75 billion.
Construction on the project is expected to begin in September 2017 with completion expected in December 2019, according to the company.
While the expansion project has federal government approval, the exact route is still subject to objections from affected landowners and in some cases, other people who the NEB finds are affected.
Trans Mountain recently filed with the National Energy Board (NEB) its Plan Profile Book of Reference which is the exact portion of the pipeline corridor approved by the board that the company is proposing to traverse, said Ali Hounsell, a consultant for the company. The plan also includes construction methodology for each parcel of land, she noted.
The filing of the PPBoR triggers the issuing of routing notices and maps to affected landowners. If objections are raised, the NEB can recommend a detailed route hearing for that parcel of land. The NEB has not yet set a schedule for any hearings that might occur.
In the Lower Mainland of British Columbia, a number of people have already filed route objections with the board.
In the meantime, Kinder Morgan is moving forward with all aspects of planning and will move forward with construction as the routing process works its way through the regulatory process.