TORONTO (Reuters) – Shares in Kinder Morgan Canada Ltd rose as much as 9.5 percent to a four-month high early on Friday, after a favorable ruling by the country’s energy regulator on its Trans Mountain pipeline expansion boosted prospects of the contentious project.
Late on Thursday, Canada’s National Energy Board said Kinder Morgan Canada could proceed with construction work on the $5.8 billion project without complying with certain bylaws from the city of Burnaby, British Columbia, through which the pipeline passes.
The swift decision is a sign the company could overcome obstacles from lower governments for the federally approved project.
The fight is not over yet as the project still faces opposition from environmentalists, aboriginal groups, the province of British Columbia and some municipal governments. But the ruling does provide “a measure of visibility,” RBC analyst Robert Kwan said in a research note.
The stock was last trading up 6.4 percent at C$17.69 while the benchmark Canada share index was up 0.4 percent.