Canada Optimism Over Pipeline Interest May Be Misplaced Sources


WINNIPEG, Manitoba – The Canadian government’s optimism that outside investors would be interested in taking over a Kinder Morgan Canada (KML.TO) oil pipeline project if the company pulls out might be misplaced, said energy industry sources and analysts.

Finance Minister Bill Morneau said on Wednesday that Canada was prepared to cover some losses the firm might suffer if the proposed C$7.4 billion ($5.8 billion) expansion of its Trans Mountain line was delayed and predicted “plenty of investors would be interested” in stepping in if need be.

Kinder Morgan Canada has said it will ditch the Trans Mountain expansion by May 31 unless Ottawa dispels the uncertainties over the project, which the provincial government in British Columbia strongly opposes on environmental grounds.

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