May 31, 2018 Read More →

On the Blogs: Houston-Based Kinder Morgan Gets a Canadian Bailout

Sightline Institute:

In his continuing bid to earn his country the title of most corrupt petro-state, Canadian prime minister Justin Trudeau just committed his government—or, rather, all of the country’s citizens—to a Can$4.5 billion bailout for the Trans Mountain pipeline expansion project.

Trudeau’s government has agreed to buy the existing Trans Mountain Pipeline, along with associated assets, from the current owner, a subsidiary of Houston-based Kinder Morgan, Inc.

And despite fierce opposition from the provincial government of British Columbia, First Nations groups, local municipalities, environmental activists, government watchdogs, and any sensible person concerned about the integrity of the Salish Sea, Trudeau plans to move forward with building a second pipeline that would nearly triple flows of heavy tar sands oil to the BC coast.

The big winner in all this is Houston’s richest billionaire, Richard Kinder—the executive chairman of Kinder Morgan, a multinational pipeline giant that rose from the ashes of Enron and succeeded in playing the Canadian government like a fiddle throughout the years-long Trans Mountain saga.

The losers? Well, just about everyone else, especially the First Nations whose homelands and waters will be threatened by an unwanted pipeline.

Financially, the Trans Mountain expansion was always a high-risk endeavor that struggled to attract investors. In the fall of 2016, Kinder Morgan, Inc. signaled that it was looking for joint-venture partners to share costs and risks, and the company continued to look for joint-venture partners through the following spring. Finding no takers, the company announced that it would raise equity through an Initial Public Offering (IPO) by bundling its Canadian assets, along with the Puget Sound Pipeline in Washington, into a shell company.

More: Canadian Government Bails Out Houston Billionaire

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