Market Chatter: Kinder Morgan Applies For Trans Mountain Tolls; Many Canadian Backers

By Staff,

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Kinder Morgan Energy Partners ( KMP ) said on Friday it filed an application for the tolls and contract terms of the proposed US$4.1 billion expansion of its Trans Mountain oil pipeline to Canada's West Coast from Alberta and also named nine energy companies that support the project, Reuters reported.

It stressed its application to the National Energy Board was not for approval of routing or construction of the project, but to provide regulatory and market certainty to customers signing up for 20-year terms. It said it expects to apply to build the project late 2013, Reuters said.

According to Reuters, the expansion is aimed at getting large volumes of oil sands-derived crude to lucrative Asian markets as a way to boost returns that are now pressured by a glut of oil supplies in the U.S. Midwest. It would compete with Enbridge Inc's (ENB.TO) proposed C$5.5 billion ($5.4 billion) Northern Gateway project.

Backers of the Trans Mountain expansion, which would more than double capacity of the pipeline to 750,000 barrels a day, are BP Plc ( BP ), Canadian Oil Sands Ltd (COS.TO), Devon Energy Corp ( DVN ), Cenovus Energy Inc (CVE.TO), Husky Energy Inc (HSE.TO), Statoil ( STL ), Imperial Oil Ltd (IMO.TO) Nexen Inc (NXY.TO), and Tesoro Corp ( TSO ), Kinder Morgan said.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: BP , DVN , KMP , STL , TSO

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