(Calgary) The CEO of Pembina Pipeline says that Trans Mountain's pipeline system would fit in perfectly with his company's operations, but he would not want the controversy associated with this expansion project.
During a conference call on Wednesday to discuss Pembina's deal to acquire Kinder Morgan Canada, Mick Dilger was asked whether his company would consider buying the pipeline that Kinder Morgan had sold. to the federal government last year.
"If you think about our plan to move western Canadian crude to higher priced markets, Trans Mountain would clearly fit into this mandate, but we do not want to manage (everything that comes with it)" said Dilger, adding that he wanted to avoid the name of his company being mentioned frequently by the media.
Kinder Morgan Canada was created in mid-2017 to raise funds for the Trans Mountain pipeline expansion, but sold its assets in Ottawa for $ 4.5 billion last summer.
In May, it announced its decision to remain a publicly traded company following a strategic review that could have resulted in the sale of some or all of the company.
In addition, Trans Mountain announced Wednesday that the construction of the expansion project would resume in the month following the approval of regulatory authorities.
Pembina's acquisition of Kinder Morgan Canada – including its interest in the Canadian portion of the Cochin Pipeline – is valued at $ 2.3 billion and includes the assumption of preferred shares and outstanding net debt. Pembina will also pay about $ 2.05 billion in cash to acquire the US portion of the Cochin pipeline.
The Cochin pipeline extends 2900 kilometers from Fort Saskatchewan, Alberta, to Chicago, with an estimated daily capacity of 110,000 barrels. The agreement also includes a facility in Edmonton and Vancouver Wharves
On the Toronto Stock Exchange, the Pembina stock closed at $ 49.09, down 18 cents or 0.37%. Kinder Morgan Canada's stock jumped $ 3.47, or 31.6%, to $ 14.45.
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